0% found this document useful (0 votes)

749 views110 pages

SG 22

macro

Uploaded by

Iqra Jawed

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

749 views110 pages

SG 22

macro

Uploaded by

Iqra Jawed

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 110

Chapter5

MonitoringJobsandInflation
1EmploymentandUnemployment
1) Theworking-agepopulationisdefinedasthenumberof
A) peopleovertheageof16whoarenotinjail,hospital,orotherinstitution.
B) peoplewhohaveajob.
C) peopleworkingfull-timejobswhoareovertheageof16.
D) peoplelookingforwork.
Answer: A
Topic: PopulationSurvey
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

2) Theworking-agepopulationcanbedividedintotwogroups,
A) peopleinthelaborforceandpeoplelookingforwork.
B) peopleinthelaborforceandpeoplewithajob.
C) peoplelookingforworkandthoseinthearmedforces.
D) peopleinthelaborforceandpeoplewhoarenotinthelaborforce.
Answer: D
Topic: PopulationSurvey
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

3) Thetotalnumberofpeopleaged16yearsandoverwhoarenotinstitutionalized________.
A) equalsthenumberofemployedplusunemployed
B) istheworking-agepopulation
C) doesnotincludestudents
D) isthelaborforce
Answer: B
Topic: WorkingAgePopulation
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

606ParkinMacroeconomics,TenthEdition

4) Whichofthefollowingstatementsisincorrect?
A) Thelaborforceisequaltothenumberofpeopleemployedplusthenumberofpeople
unemployed.
B) Theworkingagepopulationincludeseveryoneovertheageof16.
C) Theunemploymentrateisthenumberofpersonswhoareunemployeddividedbythe
laborforcethentimes100.
D) Thelabor-forceparticipationrateisthelaborforcedividedbytheworking-age
populationthentimes100.
Answer: B
Topic: WorkingAgePopulation
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

5) WhichofthefollowingisNOTincludedintheworking-agepopulation?
A) discouragedworkers
B) peoplewaitingtobecalledbacktoajobafterbeinglaidoff
C) retireesundertheageof55
D) peopleinprison
Answer: D
Topic: WorkingAgePopulation
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

6) Allpeopleintheworking-agepopulationcanbedividedinto
A) laborforceparticipants.
B) employed,unemployed,ornotinthelaborforce.
C) eitherover-employedorunder-employed.
D) potentialemployees.
Answer: B
Topic: WorkingAgePopulation
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

7) SupposetheworkingagepopulationinTinyTownis100people.If25ofthesepeopleareNOT
inthelaborforce,the________equals________.
A) unemploymentrate;25/100100
B) unemploymentrate;25/75100
C) laborforce;75
D) laborforce;25/100100
Answer: C
Topic: WorkingAgePopulation
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation607

8) Thelaborforceisthesumofthe
A) working-agepopulationandthenumberofunemployedpeople.
B) numberofemployedpeopleandtheworking-agepopulation.
C) numberofemployedpeopleandthenumberofunemployedpeople.
D) totalpopulationandthenumberofunemployedpeople.
Answer: C
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

9) Thelaborforceisdefinedas
A) peoplewithfulltimejobs.
B) workerswithjobsandunemployedworkers.
C) allpeoplecapableofwork.
D) Alloftheaboveanswersarecorrect.
Answer: B
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

10) The________equalsthenumberof________.
A) laborforce;personsover16yearsold
B) laborforce;unemployedandemployedpersons
C) workingagepopulation;employedpersons
D) unemploymentrate;peopleunemployed
Answer: B
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

11) Thelaborforceisdefinedaspeople
A) whohaveajoborarelookingforajob.
B) intheworking-agepopulationwhohaveajob.
C) intheworking-agepopulationwhohaveafulltimejob.
D) whoare16yearsofageorolder.
Answer: A
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

608ParkinMacroeconomics,TenthEdition

12) Whichpopulationcategoryequalsthesumofemployedandunemployedpeople?
A) working-agepopulation
B) laborforce
C) youngandinstitutionalized
D) notinthelaborforce
Answer: B
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

13) The________isthetotalnumberofpeopleaged16yearsandolder(andnotinjail,hospitalor
institutionalcare)whilethe________isthenumberofpeopleemployedandtheunemployed.
A) laborforce;working-agepopulation
B) laborforceparticipationrate;laborforce
C) working-agepopulation;laborforce
D) working-agepopulation;laborforceparticipationrate
Answer: C
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

14) Thelaborforceisdefinedasthenumberof
A) people16andover.
B) unemployedpeople.
C) peoplewithjobs,bothpart-timeandfull-time.
D) peoplewhoareemployedandunemployed.
Answer: D
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

15) Thelaborforceisdefinedasthe
A) numberofpeopleover16yearsofage.
B) numberofpeoplewhoareworking.
C) sumofemployedandunemployedpeople.
D) numberofpeopleinblue-collarjobs.
Answer: C
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation609

16) Thelaborforceisdefinedasthe
A) numberofemployedpeopleplusthenumberofunemployedpeople.
B) numberofpeoplewhoareworking.
C) numberofpeoplewhoareworkinginlabor-typejobs.
D) numberofunionmemberswhoareworking.
Answer: A
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

17) Thelaborforceincludes
A) onlythenumberofpeopleemployed.
B) discouragedworkers.
C) onlythenumberofpeopleunemployed.
D) bothemployedandunemployedworkers.
Answer: D
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

18) Thelaborforceisdefinedasthenumberofpeoplewho
A) areemployedplusthenumberofpeoplewhoareunemployed.
B) areavailableandlookingforworkbutareunabletofindemployment.
C) wouldliketohaveajobbuthavestoppedseekingwork.
D) wouldliketohaveafull-timejobbutareworkingpart-time.
Answer: A
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

19) Full-timestudentsandprisonersare________.
A) notinthelaborforce
B) inthelaborforce
C) countedasdiscouragedworkers
D) countedasunemployed
Answer: A
Topic: LaborForce
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

610ParkinMacroeconomics,TenthEdition

20) WhichofthefollowingisNOTconsideredtobeinthelaborforce?
A) astudentwhoworkspart-time
B) apersonwhoisnotworkingbutwhohastriedtofindajobinthepastweek
C) apersonwhoiswaitingtostartanewjobinthenext30days
D) apersonwhoisnotworkingandwhohasnottriedtofindajob
Answer: D
Topic: LaborForce
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

21) Inaneconomy,42millionpeopleareinthelaborforce,38millionareemployed,and47million
areofworkingage.Howmanypeoplearenotinthelaborforce?
A) 19percent
B) 9million
C) 5million
D) 4million
Answer: C
Topic: LaborForce
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

22) Ifthenumberofpeopleunemployedis100,thenumberofpeopleemployedis1000,andthe
working-agepopulationis1400,thenthelaborforceis
A) 1000.
B) 1100.
C) 1400.
D) 1500.
Answer: B
Topic: LaborForce
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

23) TheofficialU-3unemploymentrate
A) includespersonswithoutajobwhohavemadeeffortsinthelastweektofindajob.
B) includespersonswithoutajob,whethertheyareactivelysearchingforworkornot.
C) countsdiscouragedworkersasunemployed.
D) countspeoplewithpart-timejobswhowantfull-timejobsasunemployed.
Answer: A
Topic: Unemployment
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation611

24) TheofficialU-3unemploymentrateincludesthetotalnumberofpeoplewho
A) havejobsorarecurrentlylookingforjobs.
B) areavailableandlookingforworkbutunabletofindemployment.
C) wouldliketohaveajobbuthavestoppedseekingwork.
D) wouldliketohaveafull-timejobbutareworkingpart-time.
Answer: B
Topic: Unemployment
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

25) WhichofthefollowingpeoplewouldbecountedasisemployedintheCurrentPopulation
Survey?
A) Rich,whoisworking20hoursaweekbutwantsafull-timejob
B) Misty,whojustquitherjobtoreturnfull-timetoschool
C) April,whojustgraduatedfromcollegeandislookingforwork
D) Jason,whowaslaidofffromworklessthan6monthsagobutwhohasstoppedlooking
forwork
Answer: A
Topic: Unemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

26) Whichofthefollowingbestfitsthedefinitionofunemployed?
A) retiredandnotworking
B) workinglessthanafullworkweek
C) notworkingbutlookingforajob
D) notworkingandnotlookingforwork
Answer: C
Topic: Unemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

27) Usingthedefinitionofunemployment,whichofthefollowingindividualswouldbe
unemployed?
A) Afull-timestudentquitsschool,entersthelabormarketforthefirsttime,andsearchesfor
employment.
B) Becauseoftheincreasedlevelofautomobileimports,anemployeeofGeneralMotorsis
laidoffbutexpectstobecalledbacktoworksoon.
C) Becauseofareductioninthemilitarybudget,yournextdoorneighborlosesherjobina
plantwherenuclearwarheadsaremadeandmustlookforanewjob.
D) Alloftheseindividualsareunemployed.
Answer: D
Topic: PopulationSurvey
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

612ParkinMacroeconomics,TenthEdition

28) WhichofthefollowingpeoplewouldbeconsideredunemployedbytheBureauofLabor
Statistics?
I. Mrs.Xretiresfromherjobattheageof55anddoesnotlookforanotherjob.
II. Mr.Ywaslaidofffromhisjobasawelder,butexpectstoberehiredin8months.
A) Ionly
B) IIonly
C) bothIandII
D) neitherInorII
Answer: B
Topic: Unemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

29) Usingtheofficialmeasureofunemployment,whichofthefollowingpeopleisconsidered
unemployed?
A) apart-timeworkerwhowishestoworkfulltime
B) apersonwhogaveuplookingforjobsbecauseheorshewasdiscouragedabouthisorher
jobprospects
C) apersonwhohasbeensearchingforwork,butturnsdownajobpayingalowerwagerate
thandesired
D) apersonwhoisworkingbutexpectstobelaidoffattheendofthemonth
Answer: C
Topic: Unemployment
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

30) Usingtheofficialmeasureofunemployment,whichofthefollowingwould NOTbecountedas

unemployed?
A) apersonwhoisnotworkingbutwhohastriedtofindajobinthepastweek
B) apersonwhoiswaitingtobecalledbacktoajobafterhavingbeenlaidoff
C) apersonwhoperformstraditionalhouseworkanddoesnotworkoutsidethehomefor
pay
D) apersonwhoiswaitingtostartanewjobinthenext30days
Answer: C
Topic: Unemployment
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

31) Theunemploymentrateisthe________whoareunemployed.
A) numberofpeopleinthelaborforce
B) percentageofpeopleinthelaborforce
C) percentageofpeopleinthecountry
D) percentageoftheworking-agepopulation
Answer: B
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation613

32) Theunemploymentrateiscalculatedas
A) [(laborforce)(population)] 100.
B) [(unemployment)(population)] 100.
C) [(unemployment)(laborforce)] 100.
D) [(laborforce)(unemployment)] 100.
Answer: C
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: New10thedition
AACSB: AnalyticalSkills

33) Theunemploymentrateequals
A) (numberofpeopleemployed/workingagepopulation) 100.
B) (numberofpeopleunemployed/laborforce) 100.
C) (laborforce/workingagepopulation) 100.
D) (numberofpeopleemployed/numberofpeopleage16andover) 100.
Answer: B
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

34) Theunemploymentrateequalsthenumberof
A) unemployedworkersmultipliedby100.
B) unemployedworkersdividedbythepopulationthenmultipliedby100.
C) unemployedworkersdividedbythenumberofemployedworkersthenmultipliedby100.
D) unemployedworkersdividedbythelaborforcethenmultipliedby100.
Answer: D
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

35) Theunemploymentrateequals
A) (thenumberofunemployedworkers)/(thenumberofemployed+unemployedworkers)
100.
B) (thenumberofunemployedworkers)/(thecivilianpopulation)100.
C) (thenumberofunemployedworkers)/(theU.S.populationolderthan16yearsofage)
100.
D) (thenumberofunemployed+ employedworkers)/(U.S.populationolderthan16yearsof
age)100.
Answer: A
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

614ParkinMacroeconomics,TenthEdition

36) Theunemploymentrateequals
A) thetotalnumberofpeoplewithoutjobsinagivenperiod.
B) thepercentageofthepopulationnotcurrentlyemployed.
C) therateofchangeinunemploymentfiguresfromoneperiodtoanother.
D) thepercentageofthelaborforcecurrentlyunemployed.
Answer: D
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

37) Theunemploymentrateisfoundbydividingthenumberofunemployedpeoplebythe
A) numberofworkingindividuals,andmultiplyingby100.
B) numberoftheworking-agepopulation,andmultiplyingby100.
C) sumofworkingindividualsplusunemployedworkers,andmultiplyingby100.
D) numberinthelaborforce,anddividingby100.
Answer: C
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

38) The________iscalculatedasthenumberofpeople________dividedbythelaborforce
multipliedby100.
A) unemploymentrate;unemployed
B) employment-to-populationratio;unemployed
C) employmentrate;employed
D) employment-to-populationratio;intheworkingagepopulation
Answer: A
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

39) Theunemploymentrateisdefinedasthe
A) numberofpeoplenotworking.
B) percentageofthepopulationnotworking.
C) percentageofthelaborforcenotworking.
D) percentageoftheworking-agepopulationnotworking.
Answer: C
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation615

40) Theunemploymentrateismeasuredas
A) thenumberofpeoplethatwanttoworkbutcannotfindjobsoutoftheentirepopulation.
B) thepercentageofpeopleinthelaborforcewhoareunemployed.
C) anindicatortodeterminelong-termeconomicgrowth.
D) anindicatorforpotentialinflation.
Answer: B
Topic: Unemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

41) Tocalculatetheunemploymentrate,whichofthefollowingarenecessarypiecesofinformation?
I. thenumberofunemployedpersons
II. thepopulation
III. thenumberofpeopleinthelaborforce
IV. theworkingagepopulation
A) I,IIIIIandIV
B) IandII
C) IandIII
D) IandIV
Answer: C
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

42) Theunemploymentratemeasuresthepercentageof
A) peoplewhowantfull-timejobs,butcantfindthem.
B) theworking-agepopulationwhocantfindajob.
C) peopleinthelaborforcewhocantfindajob.
D) theworkingagepopulationthatcantfindafull -timejob.
Answer: C
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

43) Whichlabormarketstatistictendsriseduringrecessionsandfallduringexpansions?
A) theunemploymentrate
B) thelabor-forceparticipationrate
C) theemployment-to-populationratio
D) aggregatehours
Answer: A
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

616ParkinMacroeconomics,TenthEdition

44) SupposethepopulationofTinyTownis100peopleandtheworkingagepopulationis70.If10
ofthesepeopleareunemployed,theunemploymentrateinTinyTownis
A) 10percent.
B) 10/70100.
C) 10/80100.
D) Thereisnotenoughinformationprovidedtocalculatetheunemploymentrate.
Answer: D
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

45) ThepopulationofTinyTownis100peopleandthelaborforceismadeupof75people.If5of
thesepeopleareunemployed,theunemploymentrateis
A) 5/100100.
B) 5/80100.
C) 5/75100.
D) Thereisnotenoughinformationprovidedtocalculatetheunemploymentrate.
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

46) BasedonthefollowingdataforthecountryofTinyTown,theunemploymentrateequals:
Population=100
Laborforce=80
Numberofemployedpersons=70
Numberofdiscouragedworkers=5
A) 10/100100.
B) 10/80100.
C) 15/80100.
D) 5/70100.
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

47) Inaneconomy,23millionpeopleareemployedand2millionareunemployed,but5million
part-timeworkerswouldpreferfull-timework.Whatistheunemploymentrate?
A) 23.2percent
B) 6.7percent
C) 8percent
D) 25percent
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation617

48) Assumethatthetotallaborforceis100individualswith10unemployed.Theunemployment
rateis________.Nowassumethat10peopledropoutofthelaborforceandthat10remain
unemployed.Thenewunemploymentrateis________.
A) 9percent,10percent
B) 10percent,9percent
C) 10percent,11percent
D) 11percent,10percent
Answer: C
Topic: Unemployment
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

49) WhichofthefollowingdecreasestheofficialU-3unemploymentrate?
A) Workersleavethelaborforce.
B) Morewomenenterthelaborforceandseekjobs.
C) Youngpeoplegraduatefromcollegeandstarttolookfortheirfirstfull -timejob.
D) Noneoftheabovebecausetheyallincreaseordonotchangetheunemploymentrate.
Answer: A
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter1
AACSB: ReflectiveThinking

50) Duringarecession,peopledropoutofthelaborforcebecausetheyareunabletofindajob.All
elsethesame,this
A) increasestheofficialU-3unemploymentrate.
B) decreasestheofficialU-3unemploymentrate.
C) doesnotchangetheofficialU-3unemploymentrate.
D) increasestheofficialU-3unemploymentrateandthelaborforceparticipationrate.
Answer: B
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

51) IntheUnitedStatesin1996,thepopulationwas265.5millionandtheworkingagepopulation
was200.6million.Therewere133.9millionpeopleinthelaborforceand126.7ofthemwere
employed.Theunemploymentrateequaled________.
A) 7.2percent
B) 5.4percent
C) 3.6percent
D) 33percent
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

618ParkinMacroeconomics,TenthEdition

52) Supposethereare100millioninthelaborforce,and6millionunemployedpeople.Duringthe
nextmonth,200,000peoplelosetheirjobsand300,000findjobs.Thenewtotalofemployed
personsis________andthenewunemploymentrateis________.
A) 100.1million;5.8percent
B) 100million;6.1percent
C) 94.1million;5.9percent
D) 93.9million;6.1percent
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

53) Supposetheworking-agepopulationis220million,thelaborforceis150million,andthe
unemploymentrateis10percent.Thenumberofunemployedpeopleis
A) 15million.
B) 22million.
C) 37million.
D) 7million.
Answer: A
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

54) Supposeinitiallythattheworking-agepopulationis220million,thelaborforceis150million,
andtheofficialU-3unemploymentrateis10percent.5millionnewjobsarecreatedandfilled
by5millionpeoplewhohadpreviouslybeendiscouragedworkers.WhatisthenewU -3
unemploymentrate?
A) 6.25percent
B) 6.7percent
C) 9.7percent
D) 8.7percent
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

55) Ifthenumberofpeopleunemployedis100,thenumberofpeopleemployedis1000,andthe
working-agepopulationis1400,thentheunemploymentrateis
A) 6.6percent.
B) 10percent.
C) 9.1percent.
D) 7.1percent.
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation619

56) Supposethepopulationis220millionpeople,thelaborforceis150millionpeople,thenumber
ofpeopleemployedis130millionandtheworking-agepopulationis175millionpeople.What
istheunemploymentrate?
A) 9.0percent
B) 13.3percent
C) 11.4percent
D) 15.4percent
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

57) Supposetherearecurrently100peopleunemployed,1500peopleemployed,1600peopleinthe
laborforce,and2000peopleintheworkingagepopulation.Theunemploymentrateequals100
times
A) 100/1500.
B) 100/1600.
C) 100/2000.
D) 1500/2000.
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

58) Ifthepopulationis300million,with70millionundertheageof16andinstitutionalized,
another70millionnotinthelaborforce,10millionunemployedand150millionemployed,the
unemploymentrateis
A) 23.3percent.
B) 6.7percent.
C) 6.25percent.
D) 26.7percent.
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

59) Supposethecurrentunemploymentrateis5percent,thelaborforceis400millionpeople,the
laborforceparticipationrateis80percentandtheworking-agepopulationis500million
people.Whatnumberofpeopleareunemployed?
A) 100millionpeople
B) 25millionpeople
C) 20millionpeople
D) 5millionpeople
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

620ParkinMacroeconomics,TenthEdition

PersonA

PersonB
PersonC

PersonD

Nowthatthekidsareinschoolforafullday,thisperson
islookingforworkandhasinterviewedforthreejobs
duringthepasttwoweeks.
Thispersonhasbeenlaidofffromajobbutexpectstobe
calledbackassoonastheeconomyimproves.
Thispersonhasjustgraduatedfromcollegeandwill
startanewjobinthreeweeks.Inthemeantimethis
personwilltourthegreatAmericanbeaches.
Thispersonwaslaidofflastyearwhennewequipment
wasinstalledattheplant,reducingthenumberof
workersneeded.Shortlyafterbeinglaidoff,thisperson
lookedforanewjob,wasunabletofindoneandthen
stoppedlooking,eventhoughthispersonstillwantsa
jobandisavailableforwork.

60) Theabovetableshowsanswersgivenbypeopleinterviewedinagovernmentsurveyof
households.Whichindividualsareconsideredtobeapartofthelaborforce?
A) CandD
B) B,C,andD
C) A,C,andD
D) A,B,andC
Answer: D
Topic: PopulationSurvey
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

61) Theabovetableshowsanswersgivenbypeopleinterviewedinagovernmentsurveyof
households.WhichindividualsareconsideredunemployedusingtheofficialU-3
unemploymentrate?
A) A,B,andC
B) B,C,andD
C) A,C,andD
D) CandD
Answer: A
Topic: PopulationSurvey
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation621

62) Theabovetableshowsanswersgivenbypeopleinterviewedinagovernmentsurveyof
households.Whichindividualorindividualsareconsideredmarginallyattached?
A) A
B) B,C,andD
C) AandD
D) AandD
Answer: A
Topic: MarginallyAttachedWorkers
Skill: Conceptual
Questionhistory: New10thedition
AACSB: ReflectiveThinking

Wanttoworkbut
Total
Currently Notworking
nolongerlooking
population employed andlookingfor
forwork
(millions) (millions) work(millions)
(millions)
80
40
2
4
63) Inthetableabove,thesizeofthelaborforceis
A) 80million.
B) 46million.
C) 42million.
D) 40million.
Answer: C
Topic: LaborForce
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

64) Inthetableabove,thenumberofpeopleofficiallyunemployedis________.
A) 40million
B) 6million
C) 4million
D) 2million
Answer: D
Topic: PopulationSurvey
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

622ParkinMacroeconomics,TenthEdition

65) Inthetableabove,theofficialU-3unemploymentrateis
A) 50percent.
B) 15percent.
C) 10percent.
D) 5percent.
Answer: D
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

66) Inthetableabove,thenumberofmarginallyattachedworkersis________.
A) 40million
B) 6million
C) 2million
D) 4million
Answer: D
Topic: MarginallyAttachedWorkers
Skill: Analytical
Questionhistory: New10thedition
AACSB: AnalyticalSkills

67) Theemployment-to-populationratioequals
A) (laborforce)/(working-agepopulation) 100.
B) (numberofpeopleemployed)/(laborforce) 100.
C) (numberofpeoplewithfull-timejobs)/(laborforce) 100.
D) (numberofpeopleemployed)/(working-agepopulation) 100.
Answer: D
Topic: Employment-to-PopulationRatio
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

68) Theemployment-to-populationratioisdefinedas
A) totalemploymentdividedbylaborhoursthenmultipliedby100.
B) thelaborforcedividedbytheworking-agepopulationthenmultipliedby100.
C) totalemploymentdividedbythelaborforcethenmultipliedby100.
D) totalemploymentdividedbytheworking-agepopulationthenmultipliedby100.
Answer: D
Topic: Employment-to-PopulationRatio
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation623

69) Theemployment-to-populationratioisequaltothenumberof
A) unemployedpeopledividedbythetotalpopulationthenmultipliedby100.
B) employedpeopledividedbytheworking-agepopulationthenmultipliedby100.
C) employedpeopledividedbythetotalpopulationthenmultipliedby100.
D) unemployedpeopledividedbytheworkingagepopulationthenmultipliedby100.
Answer: B
Topic: Employment-to-PopulationRatio
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

70) Thepercentageofpeopleemployedaged16yearsandolderdividedbytheworking -age

populationisknownasthe
A) employmentrate.
B) employment-to-populationratio.
C) laborforceparticipationrate.
D) working-agepopulationratio.
Answer: B
Topic: Employment-to-PopulationRatio
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

71) Thepercentageofthepeopleofworkingagewhohavejobsiscalledthe________.
A) laborforce
B) inverseoftheunemploymentrate
C) employment-to-populationratio
D) employment-to-working-age-populationratio
Answer: C
Topic: Employment-to-PopulationRatio
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

72) Inaneconomy,43millionpeopleareemployed,3millionareunemployed,and4millionare
notinthelaborforce.Whatistheemployment-to-populationratio?
A) 86percent
B) 92percent
C) 93percent
D) 6.5percent
Answer: B
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

624ParkinMacroeconomics,TenthEdition

73) Supposethenumberofpeopleemployedis25millionandthenumberofpeopleinthelabor
forceis75million.Whatistheemployment-to-populationratio?
A) 33percent
B) 25percent
C) 75percent
D) Thereisnotenoughinformationgiventoanswerthequestion.
Answer: D
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

74) Ifthenumberofpeopleunemployedis100,thenumberofpeopleemployedis1000,andthe
working-agepopulationis1400,thentheemployment-to-populationratiois
A) 78.6percent.
B) 75percent.
C) 71.4percent.
D) 66.6percent.
Answer: C
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

75) Ifthepopulationis300million,with70millionundertheageof16andinstitutionalized,
another70millionnotinthelaborforce,10millionunemployed,and150millionemployed,the
employment-to-populationrateis
A) 53.3percent.
B) 65.2percent.
C) 46.7percent.
D) 87.5percent.
Answer: B
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation625

76) BasedonthefollowingdataforthecountryofTinyTown,theemployment-to-populationratio
equals________multipliedby100.
Population=200
Workingagepopulation=100
LaborForce=90
Numberofemployedpersons=75
A) 90/100.
B) 75/200
C) 90/200.
D) 75/100.
Answer: D
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

77) From1980to2000thetrendintheemployment-to-populationratiowas________andfrom
2000to2010thetrendwas________.
A) upward;downward
B) downward;downward
C) upward;upward
D) downward;upward
Answer: A
Topic: Employment-to-PopulationRatio
Skill: Recognition
Questionhistory: New10thedition
AACSB: ReflectiveThinking

Wanttoworkbut
Total
Currently Notworking
nolongerlooking
population employed andlookingfor
forwork
(millions) (millions) work(millions)
(millions)
80
40
2
4
78) Thelaborforceparticipationrateistheratioof
A) (thelaborforcedividedbytheworking-agepopulation)multipliedby100.
B) (thenumberofunemployeddividedbytheworking-agepopulation)multipliedby100.
C) (thelaborforcedividedbythetotalpopulation)multipliedby100.
D) (thenumberofunemployeddividedbythelaborforce)multipliedby100.
Answer: A
Topic: LaborForceParticipationRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

626ParkinMacroeconomics,TenthEdition

79) Thelaborforceparticipationrateiscalculatedasthe
A) laborforcedividedbythenumberofpersonsemployedthenmultipliedby100.
B) numberofpersonsunemployeddividedbythelaborforcethenmultipliedby100.
C) laborforcedividedbytheunemploymentratethenmultipliedby100.
D) laborforcedividedbytheworkingagepopulationthenmultipliedby100.
Answer: D
Topic: LaborForceParticipationRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

80) Thelaborforceparticipationrateispercentageofthe________whoareinthelaborforce.
A) peopleunderage65
B) working-agepopulation
C) peopleoverage16
D) population
Answer: B
Topic: LaborForceParticipationRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

81) Thelaborforceparticipationrateshowsthepercentageof
A) peoplenotworking,butwhowanttowork.
B) peoplewhoarenotactivelyparticipatinginmeaningfuleconomicactivity.
C) newentrantsintothelaborforce.
D) non-institutionalizedworking-agepeoplewhoareactuallyworkingorseeking
employment.
Answer: D
Topic: LaborForceParticipationRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

82) From1980to2000thetrendinthelaborforceparticipationratewas________andfrom2000to
2010thetrendwas________.
A) upward;downward
B) downward;downward
C) upward;upward
D) downward;upward
Answer: A
Topic: LaborForceParticipationRate
Skill: Recognition
Questionhistory: New10thedition
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation627

83) Whichofthefollowingpiecesofinformationdoyouneedtocalculatethelaborforce
participationrate?
I. thenumberofemployedpersons
II. thenumberofunemployedpersons
III. thepopulation
IV. theworkingagepopulation
A) IandII
B) IandIII
C) I,IIandIII
D) I,IIandIV
Answer: D
Topic: LaborForceParticipationRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

84) Ifthepeoplewhotakeearlyretirementarenotcountedintheworking -agepopulation,then

A) theunemploymentratewouldbelower.
B) thelaborforceparticipationratewouldbeless.
C) theunemploymentratewouldbehigher.
D) thelaborforceparticipationratewouldbehigher.
Answer: D
Topic: LaborForceParticipationRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

85) Inaneconomy,40millionpeopleareemployed,2millionareunemployed,and8millionare
notinthelaborforce.Whatisthelaborforceparticipationrate?
A) 83percent
B) 84percent
C) 80percent
D) 87.5percent
Answer: B
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

86) Ifthelaborforceparticipationrateisrisingandtheworking-agepopulationisnotchanging,
thenthe
A) sizeofthelaborforceisrising.
B) numberofunemployedpeopleisrisingandthesizeofthelaborforceisfalling.
C) sizeofthelaborforceisfalling.
D) numberofunemployedpeopleisfallingandthesizeofthelaborforceisrising.
Answer: A
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

628ParkinMacroeconomics,TenthEdition

87) SupposethelaborforceinTinyTownis100people.Ifthe________inTinyTownis150people,
thelaborforceparticipationrateequals________multipliedby100.
A) workingagepopulation;100/150
B) workingagepopulation;100/250
C) numberofemployedpersons;100/250
D) numberofemployedpersons;100/150
Answer: A
Topic: LaborForceParticipationRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

88) Supposetherearecurrently100peopleunemployed,1500peopleemployed,and2000peoplein
theworkingagepopulation.Thelaborforceparticipationrateequals100times
A) 100/1500.
B) 100/1600.
C) 1500/2000.
D) 1600/2000.
Answer: D
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

89) Ifthenumberofpeopleunemployedis100,thenumberofpeopleemployedis1000,andthe
working-agepopulationis1400,thenthelaborforceparticipationrateis
A) 78.6percent.
B) 71.4percent.
C) 64.3percent.
D) 66.6percent.
Answer: A
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

90) Supposethepopulationis220millionpeople,thelaborforceis150millionpeople,thenumber
ofpeopleemployedis130millionandtheworking-agepopulationis175millionpeople.What
isthelaborforceparticipationrate?
A) 0.68percent
B) 68percent
C) 85.7percent
D) 86.7percent
Answer: C
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation629

91) Ifthepopulationis300million,with70millionundertheageof16andinstitutionalized,
another70millionnotinthelaborforce,10millionunemployedand150millionemployed,the
laborforceparticipationrateis
A) 69.6percent.
B) 23.3percent.
C) 6.67percent.
D) 50percent.
Answer: A
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Category
Discouragedworkers
Unemployedworkers
Employedworkers
Population(16yearsandover)

Number(millions)
15
40
100
225

92) Intheabovetable,theworkingagepopulationis
A) 225million.
B) 100million.
C) 140million.
D) 155million.
Answer: A
Topic: PopulationSurvey
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

93) Intheabovetable,thesizeofthelaborforceis
A) 210million.
B) 155million.
C) 140million.
D) 100million.
Answer: C
Topic: PopulationSurvey
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

630ParkinMacroeconomics,TenthEdition

94) Intheabovetable,theunemploymentrateis
A) 6percent.
B) 24percent.
C) 18percent.
D) 29percent.
Answer: D
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

95) Intheabovetable,thelaborforceparticipationrateis
A) 55percent.
B) 44percent.
C) 62percent.
D) 69percent.
Answer: C
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

96) Intheabovetable,theemployment-to-populationratiois
A) 51percent.
B) 42percent.
C) 62percent.
D) 44percent.
Answer: D
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

97) Intheabovetable,thenumberofmarginallyattachedworkersis
A) 40million.
B) 55million.
C) 15million.
D) 100million.
Answer: C
Topic: MarginallyAttachedWorkers
Skill: Analytical
Questionhistory: New10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation631

Component
Under16
Workingfull-time
Workingpart-time
Retired
Unemployed

Numberofpeople
(millions)
50
90
30
40
5

98) Usingthedataintheabovetable,theunemploymentrateis
A) 4.0percent.
B) 4.16percent.
C) 5.55percent.
D) 28.0percent.
Answer: A
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

99) Usingthedataintheabovetable,thelaborforceis________million.
A) 215
B) 120
C) 125
D) 165
Answer: C
Topic: LaborForce
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

100) Usingthedataintheabovetable,thelaborforceparticipationrateis
A) 66percent.
B) 58.1percent.
C) 75.7percent.
D) 96.0percent.
Answer: C
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

632ParkinMacroeconomics,TenthEdition

Component
Totalpopulation
Working-agepopulation
Notinlaborforce
Employed

Numberof
people
2600
2000
500
1300

101) Usingtheinformationinthetableabove,calculatethenumberofpeopleinthelaborforce.
A) 2500
B) 2100
C) 1500
D) 800
Answer: C
Topic: LaborForce
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

102) Usingtheinformationinthetableabove,calculatetheunemploymentrate.
A) 53.3percent
B) 30.8percent
C) 13.3percent
D) 7.7percent
Answer: C
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

103) Usingtheinformationinthetableabove,calculatetheemployment -to-populationratio.

A) 75percent
B) 65percent
C) 50percent
D) 23.2percent
Answer: B
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation633

Component
Totalpopulation
Working-agepopulation
Laborforce
Employed
Unemployed

Numberofpeople
(millions)
246
207
139
133
6

104) Usingtheinformationintheabovetable,theunemploymentrateis
A) 4.5percent.
B) 4.3percent.
C) 2.8percent.
D) 6.0percent.
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

105) Thelaborforceparticipationrateis
A) 67.1percent.
B) 64.0percent.
C) 95.7percent.
D) 56percent.
Answer: A
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

106) Theemployment-to-populationratiois
A) 67percent.
B) 64percent.
C) 50percent.
D) 62percent.
Answer: B
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

634ParkinMacroeconomics,TenthEdition

107) Anindividualwhohasstoppedlookingforajobbuthaslookedinthepastandstillwantsajob
isreferredtoas
A) acontingentworker.
B) aproductiveworker.
C) amarginallyattachedworker.
D) anunemployedworker.
Answer: C
Topic: MarginallyAttachedWorkers
Skill: Recognition
Questionhistory: New10thedition
AACSB: ReflectiveThinking

108) Anindividualwhohasstoppedlookingforajobbecauseheisconvincedthathecannotfinda
jobisreferredtoas
A) acontingentworker.
B) aproductiveworker.
C) adiscouragedworker.
D) anunemployedworker.
Answer: C
Topic: DiscouragedWorkers
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

109) Adiscouragedworker________countedasofficiallyunemployedand________countedasin
thelaborforce.
A) is;is
B) is;isnot
C) isnot;is
D) isnot;isnot
Answer: D
Topic: DiscouragedWorkers
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

110) Discouragedworkers________countedasofficiallyunemployedbecausethey________.
A) are;arenotworking
B) are;arestillinthelaborforce
C) arenot;arenotqualifiedtowork
D) arenot;arenotactivelyseekingwork
Answer: D
Topic: DiscouragedWorkers
Skill: Conceptual
Questionhistory: New10thedition
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation635

111) Duringarecession,the________.
A) numberofdiscouragedworkersdecreases
B) unemploymentratedecreases
C) employment-to-populationratioincreases
D) numberofmarginallyattachedworkersincreases
Answer: D
Topic: MarginallyAttachedWorkers
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

112) Includingmarginallyattachedworkersinthecalculationoftheunemploymentratewould
A) increasethereportedrate.
B) lowerthereportedrate.
C) notchangethereportedrate.
D) changethereportedrate,butinanunpredictablemanner.
Answer: A
Topic: MarginallyAttachedWorkers
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

113) Whenanindividualwhohasnotbeenworkingbuthasbeenlookingforworkdecidesto
terminatethesearchprocess,theofficialunemploymentrate
A) willfall.
B) willrise.
C) willremainunchanged.
D) mayfallorrisedependingonwhetherornottheindividualresumeshiseducation.
Answer: A
Topic: MarginallyAttachedWorkers
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

114) Marginallyattachedworkersfallintowhichofthefollowingpopulationcategories?
A) employed
B) unemployed
C) laborforce
D) notinthelaborforce
Answer: D
Topic: MarginallyAttachedWorkers
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

636ParkinMacroeconomics,TenthEdition

115) Whoofthefollowingiscountedasunemployed?
A) Rene,aretiredchemist
B) Homer,afull-timestudentatavocationalschool
C) Kim,aworkeronstrikefromhercompanyforaweek
D) Glenn,astudentwhojustgraduatedfromcollegelast weekandiscurrentlylookingfora
job
Answer: D
Topic: StudyGuideQuestion,PopulationSurvey
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

116) Inacountrywithaworking-agepopulationof150million,120millionworkersareemployed
and10millionworkersareunemployed.Whatisthesizeofthelaborforce?
A) 150million
B) 130million
C) 120million
D) 10million
Answer: B
Topic: StudyGuideQuestion,PopulationSurvey
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

117) Inacountrywithaworking-agepopulationof300million,230millionworkersareemployed
and40millionworkersareunemployed.Whatisthelaborforceparticipationrate?
A) 100percent
B) 90percent
C) 65percent
D) 5percent
Answer: B
Topic: StudyGuideQuestion,PopulationSurvey
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

118) Inacountrywithaworking-agepopulationof100million,70millionworkersareemployed
and5millionworkersareunemployed.Whatisthelaborforceparticipationrate?
A) 70percent
B) 5percent
C) 75percent
D) 7percent
Answer: C
Topic: StudyGuideQuestion,LaborForceParticipationRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation637

119) Inacountrywithaworking-agepopulationof130million,90millionworkersareemployed
and10millionworkersareunemployed.Whatistheunemploymentrate?
A) 5.0percent
B) 7.1percent
C) 7.7percent
D) 10.0percent
Answer: D
Topic: StudyGuideQuestion,UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

2UnemploymentandFullEmployment
1) Bobinheritsalargesumofmoneyfromhisdeadunclesestate.Bobdecidestoretireyoung,so
hequitshisjobandheadstotheBahamas.Bobisanexampleof
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) Noneoftheaboveiscorrect.
Answer: D
Topic: Unemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

2) Thethreetypesofunemploymentare
A) voluntary,involuntary,andstructural.
B) voluntary,part-time,andcyclical.
C) frictional,part-time,andinvoluntary.
D) frictional,structural,andcyclical.
Answer: D
Topic: Unemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

3) Frictionalunemployment
A) includesdiscouragedworkers.
B) isvoluntarypart-timeunemployment.
C) isunemploymentassociatednormallaborturnover.
D) isunemploymentassociatedwithdecliningindustries.
Answer: C
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

638ParkinMacroeconomics,TenthEdition

4) Frictionalunemploymentis
A) unemploymentassociatedwithbusinesscyclerecessions.
B) unemploymentassociatedwiththechangingofjobsinachangingeconomy.
C) long-termunemployment.
D) unemploymentassociatedwithdecliningindustries.
Answer: B
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

5) Thistypeofunemploymentreflectsthenormalamountofunemployedworkerswhopossess
skillsthatwillenablethemtofindanotherjob.
A) cyclicalunemployment
B) frictionalunemployment
C) structuralunemployment
D) Noneoftheaboveanswersiscorrect.
Answer: B
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

6) Frictionalunemploymentincludes
A) unemploymentcausedbynormallaborturnoverassociatedwithpeopleleavingand
enteringthelaborforce.
B) unemploymentcausedbyindustriesmovingoverseastobettermeetforeigncompetition.
C) unemploymentcausedbyalackofeducationsothatworkersdonotpossessnecessaryjob
skills.
D) unemploymentcausedbyautomationoftheworkplacethatdisplacesunskilledworkers.
Answer: A
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

7) Unemploymentcausedbythenormallaborturnoveriscalled________unemployment.
A) part-time
B) frictional
C) involuntary
D) cyclical
Answer: B
Topic: UnemploymentTypes
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation639

8) Frictionalunemploymentistheresultof
A) technologicalchangeorforeigncompetition.
B) normallabormarketturnover.
C) aslowdownintherateofeconomicexpansion.
D) irresponsibleworkerswithpoorworkhabits.
Answer: B
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

9) Whichofthefollowingcorrectlydescribesfrictionalunemployment?
A) Frictionalunemploymentisduemainlytojoblosers.
B) Frictionalunemploymentisduemainlytojobleavers.
C) Frictionalunemploymentoccursmainlyduringrecessions.
D) Frictionalunemploymentisanormaloccurrenceinagrowingeconomy.
Answer: D
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

10) Frictionalunemploymentcomesaboutbecauseof
A) frictionbetweenlaborandmanagement.
B) amismatchbetweenskillsandavailablejobs.
C) normallabormarketturnover.
D) ageneraleconomicslowdown.
Answer: C
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

11) Thetypeofunemploymentcreatedbythenormalrateofreentryandentryintothelaborforceis
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) seasonalunemployment.
Answer: A
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

640ParkinMacroeconomics,TenthEdition

12) Unemploymentcausedbypeoplevoluntarilyleavingtheirjobsisclassifiedas
A) part-timeunemployment.
B) cyclicalunemployment.
C) frictionalunemployment.
D) seasonalunemployment.
Answer: C
Topic: FrictionalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

13) SupposethecountryofTinyTownexperiencedfrictionalunemployment.Thisfrictional
unemploymentwould
A) definitelysignalthatthecountryisinarecession.
B) beconsideredanaturaloccurrenceinagrowingeconomy.
C) signalthattherearemorejobleaversthanjoblosers.
D) signalthatthenumberofdiscouragedworkersisgrowing.
Answer: B
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

14) Whenanindividualisfrictionallyunemployed,theunemploymentarisesinpartfrom
A) ashort-termeliminationofjobsbecauseofaslowdowninbusinessactivity.
B) individualssearchingforappropriateemployment.
C) thepermanenteliminationofjobsbecauseofachangeinthestructureoftheeconomy.
D) areductionintheoveralldemandforworkersskills.
Answer: B
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

15) Frictionalunemploymentincreaseswhen
A) realGDPdecreasesandtheunemploymentraterises.
B) thenumberofworkerswhoquitonejobtofindanotherincreases.
C) discouragedworkersdropoutoftheworkforce.
D) workersarereplacedbymachinesandtheunemployedworkersdonothavetheskillsto
performnewjobs.
Answer: B
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation641

16) Topreventfrictionalunemployment,wewouldhaveto
A) eliminaterecessions.
B) eliminatethebusinesscycle.
C) preventpeoplefromleavingtheirjobs.
D) makesureeveryonegoestocollege.
Answer: C
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

17) Apersonquitsherjobinordertospendtimelookingforabetter -payingjob.Thistypeof

unemploymentisanexampleof
A) frictionalunemployment.
B) cyclicalunemployment.
C) seasonalunemployment.
D) structuralunemployment.
Answer: A
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

18) Anindividualwithgoodjobprospectswhoisbetweenjobsisbestconsideredas
A) structurallyunemployed.
B) cyclicallyunemployed.
C) notinthelaborforce.
D) frictionallyunemployed.
Answer: D
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

19) Arecentaccountinggraduatefromamajorbusinessschoolissearchingforaplacetobeginhis
careerasanaccountant.Thisindividualisbestconsideredas
A) structurallyunemployed.
B) seasonallyunemployed.
C) cyclicallyunemployed.
D) frictionallyunemployed.
Answer: D
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

642ParkinMacroeconomics,TenthEdition

20) Whenaworkerquitsajobtolookforabetterjob,
A) structuralandcyclicalunemploymentincrease.
B) structuralunemploymentdecreases.
C) cyclicalunemploymentincreases.
D) frictionalunemploymentincreases.
Answer: D
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

21) Whenawomanreentersthelaborforceandlooksforajobafterspendingtimeathomeraisinga
child,
A) cyclicalunemploymentincreases.
B) structuralunemploymentdecreases.
C) frictionalandcyclicalunemploymentincrease.
D) frictionalunemploymentincreases.
Answer: D
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

22) Studentswholeaveschoolinthespringandlookforworkareonesourceof________.
A) structuralunemployment
B) cyclicalunemployment
C) frictionalunemployment
D) business-cyclefluctuations
Answer: C
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

23) Whenastudentfinishescollegeandbeginslookingforwork,
A) cyclicalunemploymentincreases.
B) structuralunemploymentincreases.
C) frictionalunemploymentincreases.
D) frictionalandcyclicalunemploymentincrease.
Answer: C
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation643

24) Whichofthefollowingmostlikelywoulddecreasefrictionalunemployment?
A) anincreaseinthenumberofhighschoolandcollegegraduates
B) effectiveInternet-basedemploymentservicesandjobregistries
C) anexpansionofunemploymentcompensationbenefits
D) Alloftheabovewoulddecreasefrictionalunemployment.
Answer: B
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

25) SupposethatMattquitsajobwiththeXYZCorporationinordertolookformorerewarding
employment.Mattwouldbebestbeconsideredas
A) stillbeingemployed.
B) includedintheeconomyshiddenemployment.
C) frictionallyunemployed.
D) cyclicallyunemployed.
Answer: C
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

26) Catherinequitherjobinordertolookforanewone;therefore,sheisbestconsideredas
A) frictionallyunemployed.
B) structurallyunemployed.
C) cyclicallyunemployed.
D) seasonallyunemployed.
Answer: A
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

27) Becauseofabankmerger,Ms.DavislostherpositionasVicePresidentandhadtoseekwork
withotherbanks.Ms.Davishastheskillsnecessarytofindanewjob,thussheisbest
consideredas
A) frictionallyunemployed.
B) cyclicallyunemployed.
C) structurallyunemployed.
D) naturallyunemployed.
Answer: A
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

644ParkinMacroeconomics,TenthEdition

28) Billloseshisjobasaloanofficerwhenthebankheworksforisboughtupbyalargerfinancial
institution.Billhastheskillsnecessarytofindanewjob,soasBillsearchesforworkheisbest
consideredanexampleof
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) adiscouragedworker.
Answer: A
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

29) Thebestexampleofafrictionallyunemployedindividualis
A) Charleswhohaslosthisjobasanautoworkerbecauseofincreasedimportsandcantfind
agoodjobthatutilizeshisskills.
B) Marywhoquitherjobtofindworkclosertoherhome.
C) Samwholosthisjobasarealestatesalespersonwhenthehousingmarketwentsoft
becauseofarecession.
D) Sandywhohasfewskillsandisnolongerlookingforwork.
Answer: B
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

30) Structuralunemploymentis
A) associatedwiththenormalchangingofjobsinadynamiceconomy.
B) associatedwiththegeneraldownturnsintheeconomy.
C) associatedwiththegeneraldeclineofspecificindustries.
D) almostalwaysshort-terminnature.
Answer: C
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

31) Structuralunemploymentistheresultof
A) technologicalchangeorforeigncompetition.
B) normallabormarketturnover.
C) aslowdownintherateofeconomicexpansion.
D) irresponsibleworkerswithpoorworkhabits.
Answer: A
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation645

32) Structuralunemploymentis
A) associatedwiththechangingofjobsinadynamiceconomy.
B) associatedwithgeneraldownturnsintheeconomy.
C) associatedwithchangesintechnologythatchangerequiredjobskills.
D) veryshort-termunemployment.
Answer: C
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

33) SupposethatoveraperiodofyearsthecountryofQuasilandswitchedfrombeingan
agriculturally-basedeconomytoatechnologically-basedeconomy.Asaresult,manypeople
lostjobsbecausetheylackedthecorrectskills.Astheysearchfornewjobs,thesepeoplearepart
of
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) discouragedworkers.
Answer: B
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

34) Anindividualisstructurallyunemployedif
A) thereisarecessionandtheindividualislaidoff.
B) theindividualwantstoworkjustduringcertainmonthsoftheyear.
C) theindividualquitsajobinordertosearchforabetterone.
D) theindividuallacksmarketablejobskillsbecausetechnologyhaschanged.
Answer: D
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

35) Whichstatementcorrectlydescribesstructuralunemployment?
A) Structuralunemploymentoccursmainlyduringrecessions.
B) Structuralunemploymentisalsocalledfrictionalunemployment.
C) Structuralunemploymentoccursevenwhentheeconomyisatthenaturalunemployment
rate.
D) Theamountofstructuralunemploymentdependsonnormallaborturnover.
Answer: C
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

646ParkinMacroeconomics,TenthEdition

36) Unemploymentcausedbychangesintechnologyiscalled________unemployment.
A) structural
B) frictional
C) techno
D) cyclical
Answer: A
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

37) Structuralunemployment
A) fallsduringtheexpansionphaseofthebusinesscycle.
B) fallsasthepaceoftechnologicalprogressincreases.
C) generallylastslongerthanfrictionalunemployment.
D) fallswhenthegovernmentprovidesmoregenerousunemploymentcompensation
benefits.
Answer: C
Topic: StructuralUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

38) Supposethatthenumberofjobsinthefishingindustrydecreasesbutthenumberofjobsinthe
travelindustryincreases.Initially,________.
A) theeconomyremainsatfullemployment
B) structuralunemploymentincreases
C) thereisashortageofworkersinbothsectors
D) cyclicalunemploymentincreases
Answer: B
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

39) Whentheautomobilereplacedhorse-drawncarriagesastheprincipalmeansoftransportation,
firmsproducinghorse-drawncarriageswentbankruptandpermanentlylaidoffalltheir
workers,therebyincreasing
A) frictionalunemployment.
B) structuralunemployment.
C) frictionalandcyclicalunemployment.
D) cyclicalunemployment.
Answer: B
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation647

40) Thenationsstructuralunemploymentwillincreasewhen
A) badeconomicpoliciessendtheeconomyintoarecession.
B) thereisinfluxintothelabormarketofnewcollegegraduates.
C) thereisanincreaseinpost-Christmaslayoffsofworkers.
D) anincreaseintextileimportsdisplacesoldertextileworkerswhodonothavetheskills
necessarytofindnewjobs.
Answer: D
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

41) Amajorcharacteristicofstructuralunemploymentthatdifferentiatesitfromfrictional
unemploymentisthatstructuralunemployment
A) existsonlyduringarecession.
B) existsinanexpansionwhereasthereisnofrictionalunemploymentinanexpansion.
C) isashort-termproblem.
D) usuallylastslongerthanfrictionalunemployment.
Answer: D
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

42) Whentheeconomyswitchesproductiontowardservicesandawayfrommanufacturingand
workersinthemanufacturingindustryarepermanentlylaidoff,
A) frictionalunemploymentdecreases.
B) structuralunemploymentincreases.
C) cyclicalunemploymentincreases.
D) frictionalandcyclicalunemploymentincrease.
Answer: B
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

43) SupposethecountryofTinyTowndecidedtoopenitsborderstofreetrade.Asaresult,a
numberofitsworkerslosttheirjobstointernationalcompetitionandcantfindnewjobs
becausetheirskillsdontmatchwhatisrequiredforjobopenings.Theworkerswholosttheir
jobsandsearchedfornewonesarebestbeconsideredpartof
A) frictionalunemployment.
B) structuralunemployment
C) cyclicalunemployment.
D) discouragedworkers.
Answer: B
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

648ParkinMacroeconomics,TenthEdition

44) Inthe1990s,videorecordingsweremadeprimarilyontapes.However,inthe2000sDVDs
becameincreasinglypopular,leadingtoasharpdeclineinvideotapes.Asaresult,manypeople
whomanufacturedtapeslosttheirjobsanddidnthavetheskillsnecessarytoworkmaking
DVDs.Thisoccurrenceisbestconsideranexampleof
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) underemployment.
Answer: B
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

45) Howwouldyoubestdescribeamanufacturingemployeewhohasbeenfiredbecausehewas
replacedbyarobot(newtechnology)anddoesnothavetheskillsnecessarytohelpoperatethe
robot?
A) jobleaver
B) entrant/reentrant
C) cyclicallyunemployed
D) structurallyunemployed
Answer: D
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

46) Whichofthefollowingindividualsisthebestexampleofastructurallyunemployedworker?
A) arecentcollegegraduatewhohasenteredthelaborforce
B) anindividualwhohasbeenlaidofffromhisjobbecauseofabusinesscyclerecession
C) anautomobileworkerwhohaslostherjobbecauseofanincreaseinautomobileimports
anddoesnothavetheskillscurrentlyneededbybusinesses
D) anindividualwhoquitsonejobinthehopeoffindingabetterjob
Answer: C
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

47) Ms.Krupskyhasshorthandandtypingskillsandstillfindsherselfunemployed.Intodays
economy,Ms.Krupskyisanexampleofwhattypeofunemployment?
A) cyclicalunemployment
B) frictionalunemployment
C) structuralunemployment
D) Noneoftheaboveanswersiscorrect.
Answer: C
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation649

48) Andrewjustlosthisjobasacorkscrewoperatorsincehiscompanyhasfoundamachineto
performhisworktasks.Andrewdidnothavetheskillsneededtooperatethemachine.Andrew
hassearchedforanewjobfor6monthsandcontinuestosearch.Therefore,Andrewis
consideredtobe
A) frictionallyunemployed.
B) adiscouragedworker.
C) cyclicallyunemployed.
D) structurallyunemployed.
Answer: D
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

49) Nicholasdoesnotpossessmarketablejobskills;therefore,heis
A) frictionallyunemployed.
B) structurallyunemployed.
C) cyclicallyunemployed.
D) seasonallyunemployed.
Answer: B
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

PersonA
PersonB

PersonC
PersonD

Thispersonhasjustgraduatedfromhighschoolandis
workingatapart-timejobbutwantsafull-timejob.
Attheageof45,thispersonwaslaidofffromthe
automobileindustrywhennewequipmentwasinstalled
andthepersondidnothavetheskillsnecessarytouse
theequipment.Thispersonnowissearchingtofinda
newjob.
Asaresultofthispersonsspousebeingtransferredtoa
jobinanewcity,thispersonislookingforanewjob.
Thispersonjustgraduatedfromcollegeandislooking
foranengineeringjob.Inthemeantime,thispersonis
workingfull-timewaitingtables.

50) TheabovetableshowsanswersgivenbypeopleinterviewedintheCurrentPopulationSurvey.
Whichpeoplearestructurallyunemployed?
A) A,B,C,andD
B) A,B,andC
C) BandC.
D) A,B,andD
Answer: C
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

650ParkinMacroeconomics,TenthEdition

51) TheabovetableshowsanswersgivenbypeopleinterviewedintheCurrentPopulationSurvey.
Whichpersoniscyclicallyunemployed?
A) A
B) B
C) C
D) Noneofthepeople
Answer: D
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

52) Cyclicalunemployment
A) isduemainlytojobleavers.
B) mayincreaseordecreaseduringanexpansion.
C) occurswhentechnologyimprovementschangejobrequirements.
D) fluctuatesoverthebusinesscycle.
Answer: D
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

53) Whichtypeofunemploymentincreasesduringarecession?
A) cyclicalunemployment
B) frictionalunemployment
C) structuralunemployment
D) thenaturalunemploymentrate
Answer: A
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

54) Cyclicalunemployment
A) isalwayspresentinaneconomy.
B) ishigherduringanexpansion.
C) decreasesduringarecession.
D) fluctuatesoverthebusinesscycle.
Answer: D
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation651

55) Cyclicalunemploymentistheresultof
A) technologicalchangeorforeigncompetition.
B) normallabormarketturnover.
C) thebusinesscycle.
D) irresponsibleworkerswithpoorworkhabits.
Answer: C
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

56) Cyclicalunemploymentoccurswhen
A) individualsenterintothelabormarketmakingtheroundsofpotentialemployers.
B) individualswithskillsnolongervaluedinthelabormarketcannotfindemployment.
C) individualsgiveupthesearchforemployment.
D) abusinesscyclerecessiondecreasesemployment.
Answer: D
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

57) Unemploymentcausedbythefluctuationofthebusinesscycleiscalled________
unemployment.
A) structural
B) recession-related
C) frictional
D) cyclical
Answer: D
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

58) Unemploymentthatistheresultofrecessionsiscalled
A) frictionalunemployment.
B) cyclicalunemployment.
C) downtimeunemployment.
D) structuralunemployment.
Answer: B
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

652ParkinMacroeconomics,TenthEdition

59) SupposethecountryofQuasilandexperiencedadecreaseinrealGDPandpeoplewerelaidoff
fromtheirjobs.Thepeoplewouldbeconsideredpartof
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) discouragedworkers.
Answer: C
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

60) Theprimaryfactorleadingtocyclicalunemploymentiswhen
A) businessesoftendiscriminateintheirhiringpracticesonthebasisofage,sex,andrace.
B) thelevelofoveralleconomicactivityfluctuates.
C) workersquittheirjobsinordertolookforhigherpayingemployment.
D) someworkersdonothavemarketablejobskills.
Answer: B
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

61) Ifaworkeristemporarilylaidoffbecausetheeconomyisinarecession,
A) frictionalunemploymentincreases.
B) structuralunemploymentincreases.
C) thesizeofthelaborforcerises.
D) cyclicalunemploymentincreases.
Answer: D
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

62) Arecessioncausesadecreaseinthedemandforhousing,resultinginsubstantiallayoffsinthe
constructionindustry.Thepeoplelaidoffareconsidered
A) cyclicallyunemployment.
B) frictionallyunemployment.
C) seasonallyunemployment.
D) structurallyunemployment.
Answer: A
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation653

63) Iftheeconomyentersanexpansion,
A) cyclicalunemploymentincreases.
B) structuralunemploymentincreases.
C) cyclicalunemploymentdecreases.
D) structuralunemploymentdecreases.
Answer: C
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

64) Cyclicalunemployment
A) isthemajorpartofthenaturalunemploymentrate.
B) decreasesduringeconomicexpansions.
C) risesasaresultofincreasedinternationalcompetition.
D) fallswhenunemploymentcompensationpaymentsareincreased.
Answer: B
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

65) Duringaneconomicexpansion,realGDP________andunemployment________.
A) increases;increases
B) increases;decreases
C) decreases;increases
D) decreases;decreases
Answer: B
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

66) Anobserveroftheeconomynoticesthatoverthepast12monthstheunemploymentratehas
fallenfrom7.0percentto6.5percent.Duringthesametime,therateofgrowthinrealGDPhas
beenpositive.Fromthisinformationwemightconcludethat
A) inflationisnotoccurring.
B) anexpansionisoccurringintheeconomy.
C) arecessionisinprogress.
D) atroughinthebusinesscyclewillsoonbereached.
Answer: B
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

654ParkinMacroeconomics,TenthEdition

67) Cyclicalunemployment________.
A) decreasesduringanexpansion
B) growsatthesamerateaspotentialGDP
C) iszeroatabusiness-cycletrough
D) decreasesduringarecession
Answer: A
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

68) Cyclicalunemployment________duringexpansionsand________duringrecessions.
A) increases;increases
B) increases;decreases
C) decreases;increases
D) decreases;decreases
Answer: C
Topic: CyclicalUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

69) Autoandsteelworkerscommonlyexperiencethistypeofunemploymentinarecession.
A) frictionalunemployment
B) cyclicalunemployment
C) structuralunemployment
D) naturalunemploymentrate
Answer: B
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

70) Iftheeconomyentersarecession,
A) frictionalunemploymentincreases.
B) structuralunemploymentdecreases.
C) cyclicalunemploymentincreases.
D) thenumberofworkersonlayoffdecreases.
Answer: C
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation655

71) Recessionsandexpansionsaffectmoststronglywhichtypeofunemployment?
A) frictionalunemployment
B) structuralunemployment
C) cyclicalunemployment
D) seasonalunemployment
Answer: C
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

72) Mikehasjustbeenlaidofffromhisconstructionjobbecauseconsumersarenotpurchasingnew
homesbecauseoftherecession.Mikewouldbeconsideredtobepartof
A) structuralunemployment.
B) cyclicalunemployment.
C) seasonalunemployment.
D) frictionalunemployment.
Answer: B
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

73) Billisahigh-schooldropoutwholosthisjobinafastfoodrestaurantwhentheeconomy
plungedintoarecession.After8months,Billisstilllookingforwork.Heisanexampleof
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) thenaturalunemploymentrate
Answer: C
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

74) Thebestexampleofacyclicallyunemployedindividualis
A) Charleswholosthisjobasarealestatesalespersonwhenthehousingmarketwentsoft
becauseofarecession.
B) Alicewhoquitherjobtoentercollege.
C) Marywholostherjobinthetextileindustryfollowingadecreaseinthetariffontextiles.
D) Bobwhohasjustgraduatedfromcollegeandisenteringthelabormarket.
Answer: A
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

656ParkinMacroeconomics,TenthEdition

75) Whichofthefollowingsituationsbestdescribesanindividualwhoiscyclicallyunemployed?
A) Catherineisaskiinstructorwhoisnotworkingbecauseitissummer.
B) Matthewwasanartilleryman,buthehasbeenunabletofindworksinceheleftthearmy.
C) Nicholaswaslaid-offwhenordersforGeneralMotorscarsfellduringarecession.
D) Susanquitherjobasapreschoolteachertotrytofindabetterpayingjob.
Answer: C
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

76) Fullemploymentoccurswhen
A) structuralunemploymentiszero.
B) cyclicalunemploymentiszero.
C) frictionalunemploymentiszero.
D) cyclicalandfrictionalunemploymentarezero.
Answer: B
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

77) Fullemploymentoccurswhen
A) thereisnocyclicalunemployment.
B) thereisnounemployment.
C) thereisnofrictionalunemployment.
D) theunemploymentrateislessthan5percent.
Answer: A
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

78) Fullemploymentmeansthat
A) nooneisunemployed.
B) thereisnocyclicalunemployment.
C) thereisnocyclicalorfrictionalunemployment.
D) thereisnostructuralorfrictionalunemployment.
Answer: B
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation657

79) Theeconomyisatfullemploymentwhen
A) therearenounemployedworkers.
B) allunemploymentisfrictionalorstructural.
C) therearefewerunemployedworkersthanavailablejobs.
D) allunemploymentiscyclical.
Answer: B
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

80) Fullemploymentoccurswhenthe
A) unemploymentrateequalsthenaturalunemploymentrate.
B) structuralunemploymentrateequalsthefrictionalunemploymentrate.
C) naturalunemploymentrateequalsthefrictionalunemploymentrate.
D) cyclicalunemploymentrateequalsthenaturalunemploymentrate.
Answer: A
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

81) Fullemploymentoccurs
A) onlyiftheunemploymentrateiszero.
B) onlyiftheunemploymentrateisequaltothenaturalunemploymentrate.
C) onlyifunemploymentisequaltostructuralunemploymentpluscyclicalunemployment.
D) Noneoftheaboveanswersarecorrect.
Answer: B
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

82) Whentheeconomyisatfullemploymentthe
A) naturalunemploymentrateisequalto0percent.
B) naturalunemploymentrateequalstheunemploymentrate.
C) naturalunemploymentrateisequalto10percent.
D) unemploymentrateisequalto0percent.
Answer: B
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

658ParkinMacroeconomics,TenthEdition

83) Aneconomyisatfullemploymentwhen________.
A) theunemploymentrateiszero
B) thereisnofrictionalunemployment
C) theunemploymentrateequalsthenaturalunemploymentrate
D) thereisnostructuralunemployment
Answer: C
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

84) Supposethenaturalunemploymentrateequals6percentandthecurrentunemploymentrateis
8percent.Wecanconcludethat
A) thereisnostructuralunemployment.
B) thereisnofrictionalunemployment.
C) thereisnocyclicalunemployment.
D) fullemploymentisnotoccurring.
Answer: D
Topic: FullEmployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

85) Fullemploymentmeans
A) zerounemployment.
B) onlycyclicalunemploymentexists.
C) onlyfrictionalandstructuralunemploymentexists.
D) Noneoftheaboveanswersarecorrect.
Answer: C
Topic: FullEmployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

86) Wheneconomistsspeakoffullemployment,theyrefertothecaseinwhichthesumoffrictional
andstructuralunemploymentis
A) fallingovertime.
B) equaltozero.
C) equaltotheactualamountofunemployment.
D) greaterthanthelevelofdeficientdemandunemployment.
Answer: C
Topic: FullEmployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation659

87) Whentheeconomyisoperatingatfullemployment,thenaturalunemploymentrateconsistsof
only
A) cyclicalunemployment.
B) frictionalandstructuralunemployment.
C) frictionalandcyclicalunemployment.
D) structuralandcyclicalunemployment.
Answer: B
Topic: FullEmployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

88) Anunemploymentrateofzeropercentcannotbeexpectedbecause
A) therearesomepeoplewhodonotwanttowork.
B) therewillalwaysbediscouragedworkers.
C) someportionofthelaborforcewillalwaysbebetweenjobs.
D) cyclicalunemploymentwillalwaysexist.
Answer: C
Topic: NaturalUnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

89) Thenaturalunemploymentrate
i) occurswhenonlythereisnocyclicalunemploymentpresent.
ii) istheunemploymentratewhentheeconomyisatpotentialGDP.
A) ionly.
B) iionly
C) neitherinorii.
D) iandii
Answer: D
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

90) Thenaturalunemploymentrate
A) fallswithanincreaseincyclicalunemployment.
B) riseswithanincreaseinstructuralunemployment.
C) riseswithanincreaseincyclicalunemployment.
D) riseswithadecreaseinfrictionalunemployment.
Answer: B
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

660ParkinMacroeconomics,TenthEdition

91) Theunemploymentrateisatthenaturalunemploymentratewhen
A) frictionalunemploymentequalszero.
B) structuralunemploymentequalszero.
C) cyclicalunemploymentequalszero.
D) alltypesofunemploymentequalzero.
Answer: C
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

92) Thenaturalunemploymentrateistheunemploymentratethatexistswhenthereisno
A) structuralunemployment.
B) frictionalunemployment.
C) cyclicalunemployment.
D) cyclicalorstructuralunemployment.
Answer: C
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

93) Whencyclicalunemploymentiszero,
A) frictionalunemploymentiszero.
B) cyclicalandfrictionalunemploymentarezero.
C) structuralunemploymentiszero.
D) theunemploymentrateequalsthenaturalunemploymentrate.
Answer: D
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

94) Thenaturalunemploymentrate
A) isaconstantfigureofabout4percent.
B) fluctuateswiththerateofinflation.
C) istheunemploymentratethatoccurswhentheeconomyisatfullemployment.
D) isequaltocyclicalunemployment.
Answer: C
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation661

95) Ifunemploymentisatthenaturalrate,thenthere
A) isnocyclicalunemployment.
B) isnofrictionalunemployment.
C) willbecyclicalandfrictionalunemploymentbutnotstructuralunemployment.
D) willbeonlycyclicalunemployment.
Answer: A
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

96) Ifunemploymentequalsthenaturalunemploymentrate,thenthere
A) iszerounemployment.
B) isonlyfrictionalorstructuralunemployment.
C) arenojobopeningsexistingatthetime.
D) islessthanfullemployment.
Answer: B
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

97) Thenaturalunemploymentrate
A) occurswhentheunemploymentrateis0percent.
B) istheunemploymentratewhenthereisnostructuralunemployment.
C) istheunemploymentrateatfullemployment.
D) istheunemploymentratewhenthereisonlycyclicalunemployment.
Answer: C
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

98) Fullemploymentexistswhen
A) thereisonlyfrictionalandstructuralunemployment.
B) theeconomyisatthenaturalunemploymentrate.
C) thereisnocyclicalunemployment.
D) Alloftheaboveanswersarecorrect.
Answer: D
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

662ParkinMacroeconomics,TenthEdition

99) Whentheeconomymovesintoandoutofrecessionsandexpansions,theunemploymentrate
fluctuatesaroundthe
A) naturalunemploymentrate.
B) structuralunemploymentrate.
C) cyclicalunemployment.
D) frictionalunemploymentrate.
Answer: A
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

100) Thenaturalunemploymentrate________.
A) isthesamefromyeartoyear
B) isgreaterthantheactualrateofunemployment
C) istheunemploymentratewhenthereisnocyclicalunemployment
D) equalszero
Answer: C
Topic: NaturalUnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

101) Whencyclicalunemploymentincreasesandotherthingsremainthesame,________.
A) thenaturalunemploymentrateincreases
B) theamountoffrictionalunemploymentincreases
C) theamountofstructuralunemploymentdecreases
D) thenaturalunemploymentratedoesnotchange
Answer: D
Topic: NaturalUnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

102) Therelationshipbetweentheunemploymentrateandthenaturalunemploymentrateisthatthe
unemploymentrate
A) fluctuatesaboutthenaturalrate.
B) equalsthenaturalrate.
C) isalwaysbelowthenaturalrate.
D) isalwaysabovethenaturalrate.
Answer: A
Topic: NaturalUnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation663

103) Supposetheeconomyisexperiencingfrictionalunemploymentof1percent,structural
unemploymentof3percentandcyclicalunemploymentof4percent.Whatisthenatural
unemploymentrate?
A) 3percent.
B) 4percent.
C) 5percent.
D) 7percent.
Answer: B
Topic: NaturalUnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

104) Supposethatthenaturalunemploymentrateis4.5percentandtheactualunemploymentrateis
3.5percent.Thencyclicalunemploymentis
A) 1percent.
B) -1percent.
C) 8percent.
D) 0percent.
Answer: B
Topic: NaturalUnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

105) Thenaturalunemploymentrate
A) estimatedtobecloseto9percentinrecentyearsintheUnitedStates.
B) hasbeenestimatedtorangebetween4percentand6percentintheUnitedStatesinrecent
years.
C) isattainedwhenevertheunemploymentrateislessthan5percentbecause95percent
employmentisconsideredfullemployment.
D) occurswhen100percentofthelaborforceisemployed.
Answer: B
Topic: NaturalUnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

106) Cyclicalunemploymentexistswhen
A) frictionalandstructuralunemploymentiszero.
B) realnationalincomeexceedspotentialincome.
C) realGDPexceedspotentialGDP.
D) realGDPislessthanpotentialGDP.
Answer: D
Topic: PotentialGDPandUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

664ParkinMacroeconomics,TenthEdition

107) WhenrealGDPis________potentialGDP,theunemploymentrateis________thenatural
unemploymentrate.
A) greaterthan;lessthan
B) lessthan;equalto
C) equalto;greaterthan
D) greaterthan;greaterthan
Answer: A
Topic: PotentialGDPandUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

108) Supposethattheunemploymentrateequals4.5percentandthatthenaturalunemploymentrate
is5.5percent.Wecanconcludethat
A) theoutputgapisnegative.
B) theoutputgapequalszero.
C) theoutputgapispositive.
D) wehavemismeasuredthenaturalunemploymentrate.
Answer: C
Topic: PotentialGDPandUnemployment
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

109) Whentheunemploymentrateislessthanthenaturalunemploymentrate,
A) theoutputgapispositive.
B) theoutputgapequalszero.
C) theoutputgapisnegative.
D) Noneoftheaboveispossiblebecauseitisimpossiblefortheunemploymentratetobeless
thanthenaturalrate.
Answer: A
Topic: PotentialGDPandUnemployment
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

110) Whenmorelaborisunemployedthantheamountatthenaturalunemploymentrate,thenreal
GDP________potentialGDP.
A) isequalto
B) islessthan
C) isgreaterthan
D) cannotbecomparedto
Answer: B
Topic: PotentialGDPandUnemployment
Skill: Conceptual
Questionhistory: New10thedition
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation665

111) Theunemploymentrategenerallyfallsduring________inthebusinesscycle.
A) apeak
B) arecession
C) atrough
D) anexpansion
Answer: D
Topic: StudyGuideQuestion,UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

112) Atthenaturalunemploymentrate,thereisno
A) frictionalunemployment.
B) structuralunemployment.
C) cyclicalunemployment.
D) unemployment.
Answer: C
Topic: StudyGuideQuestion,NaturalRateofUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

113) Iftheeconomyisatfullemployment,
A) theentirepopulationisemployed.
B) theentirelaborforceisemployed.
C) theonlyunemploymentisfrictionalunemploymentplusdiscouragedworkers.
D) realGDPequalspotentialGDP.
Answer: D
Topic: StudyGuideQuestion,FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

3ThePriceLevel,Inflation,andDeflation
1) Anincreaseinthepricelevelisdefinedas
A) arecession.
B) agrowthboom.
C) inflation.
D) anexpansion.
Answer: C
Topic: Inflation
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

666ParkinMacroeconomics,TenthEdition

2) Inflationisaproblemwhen
A) itisunpredictable.
B) itcausesthevalueofmoneytovaryunpredictably.
C) itcausesresourcestobedivertedfromproductiveuses.
D) Alloftheaboveanswersarecorrect.
Answer: D
Topic: WhyInflationIsaProblem
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

3) Unpredictablechangesinthevalueofmoney,whichbringsaboutgainsandlosses,area
consequenceofunpredictablechangesin
A) realGDP.
B) unemploymentrate.
C) inflation.
D) productivity.
Answer: C
Topic: WhyInflationIsaProblem
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

4) Thecostofinflationtosocietyincludes
I. theopportunitycostsofresourcesusedbypeopletoprotectthemselvesagainstinflation.
II. thediversionofproductiveresourcestoforecastinginflation.
A) Ionly
B) IIonly
C) bothIandII
D) neitherInorII
Answer: C
Topic: WhyInflationIsaProblem
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

5) Thecostofinflationtosocietyincludes
A) unpredictablechangesinthevalueofmoney.
B) higherinterestratespaidbyborrowers.
C) higherinterestratespaidbythegovernmentonitsdebt.
D) thelostspendingwhenpeopledonothaveenoughmoney.
Answer: A
Topic: WhyInflationIsaProblem
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation667

6) Inaperiodofrapid,unexpectedinflation,resourcescanbelost
A) whenfirmsinvestinresearchanddevelopmentinsteadofforecastinginflation.
B) whenfirmsuseresourcestoforecastinflation.
C) becauserapidinflationalmostalwaysturnsintoahyperinflation.
D) BothanswersBandCarecorrect.
Answer: B
Topic: WhyInflationIsaProblem
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

7) Hyperinflationisdefinedas
A) declininginflationrates.
B) risingbutlowinflationrates.
C) veryhighinflationrates.
D) verylowinflationrates.
Answer: C
Topic: WhyInflationIsaProblem
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

8) TheConsumerPriceIndexisameasureoftheaverageofthepricespaidby________forafixed
basketofconsumergoodsandservices.
A) urbanconsumers
B) allconsumers
C) urbanwageearnersandclericalworkers
D) consumerslivingincitieswithapopulationgreaterthan100,000
Answer: A
Topic: ConsumerPriceIndex
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

9) ThefirststepinmeasuringtheCPIisto
A) selectthemarketbasket.
B) conductamonthlysurvey.
C) collectpricesforthebasketofgoodsandservices.
D) interviewbusinesses.
Answer: A
Topic: ConsumerPriceIndex
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

668ParkinMacroeconomics,TenthEdition

10) Theconsumerpriceindex(CPI)
A) comparesthecostofthetypicalbasketofgoodsconsumedinperiod1tothecostofa
basketofgoodstypicallyconsumedinperiod2.
B) comparesthecostinthecurrentperiodtothecostinareferencebaseperiodofabasketof
goodstypicallyconsumedinthebaseperiod.
C) measurestheincreaseinthepricesofthegoodsincludedinGDP.
D) istheratiooftheaveragepriceofatypicalbasketofgoodstothecostofproducingthose
goods.
Answer: B
Topic: ConsumerPriceIndex
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

11) IfthebasketofgoodsandservicesusedtocalculatetheCPIcost$200inthereferencebase
periodand$450inalateryear,theCPIforthelatteryearequals
A) 200.
B) 225.
C) 325.
D) 450.
Answer: B
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

12) IftheCPIbasketcosts$35inthebaseperiodbutcosts$42,whatistheCPIinthenextperiod?
A) 83.3
B) $42
C) 20percent
D) 120
Answer: D
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

13) SupposetheConsumerPriceIndexis143.6.Whatdoesthatnumbermean?
A) Onaverage,goodscost$143.60.
B) Onaverage,goodscost$243.60.
C) Pricesrose143.6percentoverthereferencebaseperiod,onaverage.
D) Pricesrose43.6percentoverthereferencebaseperiod,onaverage.
Answer: D
Topic: ConsumerPriceIndex
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation669

14) IftheCPIis120,thismeansthat
A) pricesare120percenthigherthaninthereferencebaseperiod.
B) pricesare0.12timeshigherthaninthereferencebaseperiod.
C) pricesare20percenthigherthaninthereferencebaseperiod.
D) theinflationratemustbepositive.
Answer: C
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

DVDs
Bottled
water

CPIbasket
quantity
10discs
200bottles

2003price

2011price

$16perdisc

$12perdisc

$1.00perbottle $1.25perbottle

15) If2003isthereferencebaseperiod,whatisthepriceindexfortheCPIbasketofgoodsfor2011
intheabovetable?
A) 97.3
B) 102.8
C) 128.0
D) zerobecausethepriceofCDsfellandthepriceofwaterincreased
Answer: B
Topic: ConsumerPriceIndex
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

2008
Item
Movietickets
Bagsof
popcorn
Drinksofsoda

Quantity
4

Price
$5.00

2009
Price
$7.50

$3.00

$1.00

$1.50

16) Theinformationinthetableabovegivesthe2008referencebaseperiodCPIbasketandprices
usedtoconstructtheCPIforasmallnation.Italsohasthe2009prices.Whatisthevalueofthe
CPIforthereferencebaseperiod,2008?
A) 140
B) 133
C) 100
D) 75
Answer: C
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

670ParkinMacroeconomics,TenthEdition

17) Theinformationinthetableabovegivesthe2008referencebaseperiodCPIbasketandprices
usedtoconstructtheCPIforasmallnation.Italsohasthe2009prices.Whatisthevalueofthe
CPIfor2009?
A) 140
B) 133
C) 100
D) 75
Answer: A
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

18) TheCPIbasketcontains400orangesand800pens.Inthebaseyear,thepriceofanorangeis
$1.00andthepriceofapenis$0.75.Thisyear,urbanconsumerseachbuy300orangesat$2.00
eachand850pensat$1.00each.TheCPIthisyearis________.
A) 1.60
B) 62.5
C) 160
D) 140
Answer: C
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

19) IftheCPIbasketofgoodscost$200inthereferencebaseperiodand$450inalateryear,theCPI
inthelateryearequals
A) 225.
B) 250.
C) 300.
D) 450.
Answer: A
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

20) UsingthenotationPttodesignatethisperiodspricelevelandPt-1 todesignatelastperiods

pricelevel,theformulaformeasuringtheinflationratefromlastperiodtothisperiodis
A) [(Pt-Pt-1 )/Pt]100.
B) [(Pt-1 -Pt)/Pt-1 ]100.
C) [(Pt-Pt-1 )/Pt-1 ]100.
D) [(Pt-1 -Pt)/Pt]100.
Answer: C
Topic: InflationRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation671

21) SupposetheCPIlastyearis121andtheCPIthisyearis137.Thecorrectmethodtocalculatethe
inflationrateis
A) (137-121)/100=0.16.
B) 137121=258.
C) [(137-121)/121]100= 13.2.
D) (137/121)100=113.2.
Answer: C
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

22) IftheCPIwas132.5attheendoflastyearand140.2attheendofthisyear,theinflationrate
overthesetwoyearswas
A) 7.7percent.
B) 5.4percent.
C) 4.4percent.
D) 5.8percent.
Answer: D
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

23) IftheCPIwas121.5attheendoflastyearand138.3attheendofthisyear,theinflationrate
overthesetwoyearswas
A) 10.2percent.
B) 13.8percent.
C) 12.2percent.
D) 16.8percent.
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

24) IftheCPIwas122.3attheendoflastyearand124.5attheendofthisyear,theinflationrate
overthesetwoyearswas
A) 1.8percent.
B) 2.5percent.
C) 22.5percent.
D) 18.0percent.
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

672ParkinMacroeconomics,TenthEdition

25) IftheCPIwas132.5attheendoflastyearand137.5attheendofthisyear,theinflationrate
overthesetwoyearswas
A) 3.6percent.
B) 3.8percent.
C) 5.0percent.
D) Noneoftheaboveanswersiscorrect.
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

26) AttheendoflastyeartheConsumerPriceIndexwasequalto163.8andattheendofthisyearit
wasequalto157.5.Whatistheinflationrateoverthistimeperiod?
A) 6.3percent
B) 4.0percent
C) 3.85percent
D) 10.1percent
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

27) Ifthepricelevellastyearwas220andthisyearis250,whatistheinflationratebetweenthetwo
years?
A) 30percent
B) 13.6percent
C) 12.2percent
D) 20percent
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

28) Ifthisyearthepricelevelis135andlastyearitwas125,theinflationrateis
A) 8percent.
B) 10percent.
C) 12percent.
D) noneoftheabove
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation673

29) Supposethepricelevelthisyearis150andthepricelevellastyearwas125.Theinflationrate
betweenlastyearandthisyearwas
A) 20percent.
B) 2percent.
C) 16.6percent.
D) 1.6percent.
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

30) SupposethatlastyeartheConsumerPriceIndexwas124;thisyearitis130.7.Whatwasthe
inflationratebetweentheseyears?
A) 30.7percent
B) 6.7percent
C) 5.4percent
D) 5.1percent
Answer: C
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

31) IftheCPIthisyearis220andwas200inlastyear,theannualinflationratebetweenthetwo
yearsis
A) 5percent.
B) 10percent.
C) 20percent.
D) 2percent.
Answer: B
Topic: Inflation
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

32) IftheConsumerPriceIndexlastyearwas110and115thisyear,theinflationrateis
approximately
A) 4.5percent.
B) 5.0percent.
C) 10.0percent.
D) 15.0percent.
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

674ParkinMacroeconomics,TenthEdition

33) IftheCPIforthisyearis220andtheCPIforlastyearwas215,theinflationrateis
A) justover2percent.
B) 5percent.
C) justover5percent.
D) 10percent.
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

34) Ifthisyearspricelevelis126andlastyearspricelevelwas120,theinflationrateis________.
A) 0.95percentayear
B) 5percentayear
C) 6percentayear
D) 1.05percentayear
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

35) IftheCPIattheendoflastyearwas100andtheCPIattheendofthisyearwas115,the
inflationratewas
A) 1.5percent.
B) 15percent.
C) 100percent.
D) 115percent.
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

36) Lastyearspricelevelwas120andsincethentherehasbeena5percentinflation.Thisyears
pricelevelis
A) 125.
B) 126.
C) 130.
D) noneoftheabove
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation675

Year
2008
2009
2010
2011

Pricelevel
91
100
110
121

37) Intheabovetable,theinflationratebetween2008and2009isapproximately
A) 0.9percent.
B) 1percent.
C) 10percent.
D) 100percent.
Answer: C
Topic: InflationRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

38) Intheabovetable,theinflationratebetween2009and2010isapproximately
A) 9percent.
B) 10percent.
C) 100percent.
D) 110percent.
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

39) Intheabovetable,theinflationratebetween2010and2011isapproximately
A) 10percent.
B) 11percent.
C) 121percent.
D) Noneoftheaboveanswersiscorrect.
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

676ParkinMacroeconomics,TenthEdition

Year

Priceindex

1
2
3
4
5
6

100
117
125
120
D
150

Inflationrate
(percent)
A
B
C
8.3
E

40) Inthetableabove,whatinflationratebelongsinspaceA?
A) 17.0percent
B) 6.8percent
C) 8.3percent
D) -4.0percent
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

41) Inthetableabove,whatinflationratebelongsinspaceB?
A) 17.0percent
B) 6.8percent
C) 8.3percent
D) -4.0percent
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

42) Inthetableabove,whatinflationratebelongsinspaceC?
A) 17.0percent
B) 6.8percent
C) 8.3percent
D) -4.0percent
Answer: D
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation677

43) Inthetableabove,whatpricelevelbelongsinspaceD?
A) 125
B) 130
C) 140
D) 145
Answer: B
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

44) Inthetableabove,whatinflationratebelongsinspaceE?
A) 17.0percent
B) 6.8percent
C) 8.3percent
D) 15.4percent
Answer: D
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Item
Books
Pens

2010
Quantity
Price
10
$30
20
$1

2011
Quantity
Price
8
$50
15
$2

45) In2010,consumersinDexterconsumedonlybooksandpens.Thepricesandquantitiesfor2010
and2011arelistedinthetableabove.ThereferencebaseperiodforDextersCPIis2010.Whatis
thecostoftheCPIbasketin2010?
A) $430
B) $335
C) $320
D) $540
Answer: C
Topic: TheConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

678ParkinMacroeconomics,TenthEdition

46) In2010,consumersinDexterconsumedonlybooksandpens.Thepricesandquantitiesfor2010
and2011arelistedinthetableabove.ThereferencebaseperiodforDextersCPIis2010.Whatis
theCPIin2010?
A) 320
B) 1.00
C) 3.20
D) 100
Answer: D
Topic: TheConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

47) In2010,consumersinDexterconsumedonlybooksandpens.Thepricesandquantitiesfor2010
and2011arelistedinthetableabove.ThereferencebaseperiodforDextersCPIis2010.Whatis
thecostoftheCPIbasketin2011?
A) $430
B) $335
C) $320
D) $540
Answer: D
Topic: TheConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

48) In2010,consumersinDexterconsumedonlybooksandpens.Thepricesandquantitiesfor2010
and2011arelistedinthetableabove.ThereferencebaseperiodforDextersCPIis2010.Whatis
theCPIin2011?
A) 59
B) 129
C) 169
D) 102
Answer: C
Topic: TheConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

49) In2010,consumersinDexterconsumedonlybooksandpens.Thepricesandquantitiesfor2010
and2011arelistedinthetableabove.ThereferencebaseperiodforDextersCPIis2010.Whatis
theinflationratein2011?
A) 69percent
B) zero
C) 31percent
D) 2percent
Answer: A
Topic: InflationRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation679

50) Ifthisyearspricelevelexceedslastyears,
A) theinflationratebetweentheseyearshasbeenpositive.
B) theinflationrateisaccelerating.
C) deflationisoccurring.
D) norelativepricechangesareoccurring.
Answer: A
Topic: InflationandthePriceLevel
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

51) Ifthepricelevelforthelastthreemonthshasbeen112,125,and126,wewouldsay
A) inflationhasbeenconstantoverthethreemonths.
B) inflationwasmorerapidbetweenthefirstandsecondmonththanbetweenthesecondand
thirdmonth.
C) inflationwaslessrapidbetweenthefirstandsecondmonththanbetweenthesecondand
thirdmonth.
D) inflationhassteadilyincreasedoverthethreemonths.
Answer: B
Topic: InflationandthePriceLevel
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

52) Assumetheinflationratefallsfrom4percentto2percent.Thismeansthat
A) thepricelevelhasfallen.
B) thepricelevelisincreasingmoreslowly.
C) theeconomyisexperiencingdeflation.
D) realGDPisdecreasing.
Answer: B
Topic: InflationandthePriceLevel
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

53) Iftheinflationrateisnegative,thepricelevelinaneconomyis
A) falling.
B) risingslowly.
C) constant.
D) risingrapidly.
Answer: A
Topic: InflationandthePriceLevel
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

680ParkinMacroeconomics,TenthEdition

54) Supposethatthepricelevelwas100in2008,110in2009,and130in2010.Overthesethree
years,
A) deflationoccurredatanacceleratingrate.
B) theinflationratewaspositivebutslowing.
C) priceswerestable.
D) theinflationratewaspositiveandaccelerating.
Answer: D
Topic: InflationandthePriceLevel
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

55) InChina,supposethatthepricelevelwas100in2007,110in2008,120in2009,and130in2011.
Overthesethreeyears,
A) theinflationrateaccelerated.
B) inflationdidnotoccur.
C) priceswerestable.
D) theinflationratewaspositive.
Answer: D
Topic: InflationandthePriceLevel
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

56) IntheUnitedStates,theinflationratehas
A) remainedalmostconstantoverthepast25years.
B) risenandfallensincethe1970s.
C) fallenasaresultofOPECoilpricehikes.
D) risenconstantlyoverthepast30years.
Answer: B
Topic: InflationintheUnitedStates
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

57) LookingatinflationratesintheUnitedStatessincethe1970sweseethat
A) inflationfellthemostduringthe1970sproductivityslowdown.
B) thehighestinflationrateswerethedoubledigitsduringthe1990s.
C) theinflationrateincreasedwiththeincreasedgrowthofthe1990s.
D) the1970sexperiencedthehighestinflationrates.
Answer: D
Topic: InflationintheUnitedStates
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation681

58) ThebiasesintheCPIincludethe
A) oldgoods,unemployment,andinflationbiases.
B) newgoods,qualitychange,andsubstitutionbiases.
C) oldgoods,newgoods,andqualitychangebiases.
D) substitution,newgoods,andoldgoodsbiases.
Answer: B
Topic: BiasedCPI
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

59) ThebiasintheCPItypically
A) overstatesinflation.
B) understatesinflation.
C) abouthalfthetimeoverstatesandabouthalfthetimeunderstatestheinflationrate.
D) cannotbemeasuredorestimated.
Answer: A
Topic: BiasedCPI
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

60) WhichofthefollowingmeansthattheCPIoverstatestheactualinflationrate?
A) newgoodsbias
B) qualitychangebias
C) outletsubstitutionbias
D) AlloftheabovecausetheCPItooverstateinflation
Answer: D
Topic: BiasedCPI
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

61) ThebiasesintheCPIare
A) notimportantsincetheyaresosmall.
B) importantonlytoeconomists,nottherealworld.
C) importantsincetheyeffectnearly1/3offederalgovernmentspending.
D) notimportantalthoughtheyarelarge.
Answer: C
Topic: BiasedCPI
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

682ParkinMacroeconomics,TenthEdition

62) ThecurrentlyusedmethodforcalculatingtheCPI
A) accountsforpeopleincreasingconsumptionofagoodthatfallsinrelativeprice.
B) probablyoverstatesinflationbyabout1percentagepoint.
C) hasnoeffectongovernmentexpenditures.
D) Noneoftheaboveanswersarecorrect.
Answer: B
Topic: BiasedCPI
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

63) BecauseofthebiasesincalculatingtheCPI,actualinflationis
A) accuratelymeasured.
B) lessthanthemeasuredinflationratebyabout1percentperyear.
C) morethanthemeasuredinflationratebyabout1percentperyear.
D) morethanthemeasuredinflationratebyabout1percentpermonth.
Answer: B
Topic: BiasedCPI
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

64) ThecurrentlyusedmethodforcalculatingtheCPI
A) accountsforpeopleincreasingconsumptionofagoodthatfallsinrelativeprice.
B) probablyoverstatesinflationbyabout1percentagepoint.
C) hasnoeffectongovernmentexpenditures.
D) Noneoftheaboveanswersarecorrect.
Answer: B
Topic: BiasedCPI
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

65) AnexampleofthenewgoodsbiasintheCPIisthe
A) introductionofhigherqualitybrakesasstandardequipmentonnewcars.
B) introductionofhybridautomobiles,vehiclesthatwerenotmadeuntilrecently.
C) decreasingpopularityofSUVsasthepriceofgasolinehasrisen.
D) switchfromtraditionalcardealershipstolow-costInternetcarbuyingservices.
Answer: B
Topic: BiasedCPI,NewGoodsBias
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation683

66) Ifanewandbettergoodreplacedanolderandlessexpensivegood,thenthepricelevel
measuredbytheCPI________.
A) islowerthantheactualpricelevel
B) ishigherthantheactualpricelevel
C) mightbeeitherhigherorlowerthantheactualprice
D) isthesameastheactualpricelevelbecauseitmeasuresthepricesoftheactualgoods.
Answer: B
Topic: TheBiasedCPI,NewGoodsBias
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

67) Priceindexescanoverstateinflationbecausethey
A) omitsomequalityimprovements.
B) donotcontainthepricesofanyusedgoods.
C) donotcontainthepricesofforeigngoods.
D) donotcontainthepricesofservices.
Answer: A
Topic: BiasedCPI,QualityImprovement
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

68) Ascurrentlycalculated,theCPItendstooverstatethetrueinflationratebecause
A) wecannotknowwhatthetrueinflationrateis.
B) itfailstocorrectlymeasurequalitychangesforsomeproducts.
C) themarketbasketselectedisinappropriate.
D) themarketbasketfailstoweighhousingcostssufficiently.
Answer: B
Topic: BiasedCPI,QualityImprovement
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

69) ThetechniquecurrentlyusedtocalculatetheCPIimplicitlyassumesthatovertimeconsumers
buy
A) relativelymoreofgoodswhoserelativepricesarerising.
B) relativelylessofgoodswhoserelativepricesarerising.
C) thesamerelativequantitiesofgoodsasinabaseyear.
D) goodsandserviceswhosequalityimprovesattherateofgrowthofrealincome.
Answer: C
Topic: BiasedCPI,CommoditySubstitutionBias
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

684ParkinMacroeconomics,TenthEdition

70) SubstitutionbiasintheCPIreferstothefactthattheCPI
A) takesintoaccountthesubstitutionofgoodsbyconsumerswhenrelativepriceschange.
B) takesnoaccountofthesubstitutionofgoodsbyconsumerswhenrelativepriceschange.
C) substitutesqualitychangeswhenevertheyoccurwithouttakingaccountofthecostofthe
qualitychanges.
D) substitutesrelativepricesforabsolutepricesofgoods.
Answer: B
Topic: BiasedCPI,CommoditySubstitutionBias
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

71) Attheendoflastyear,theCPIequaled120.Attheendofthisyear,theCPIequals132.Whatis
theinflationrateoverthisyear?
A) 6percent
B) 10percent
C) 12percent
D) Noneoftheaboveanswersarecorrectbecausemoreinformationisneededtocalculatethe
inflationrate.
Answer: B
Topic: StudyGuideQuestion,InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

72) Iflastyearspricelevelwas100andthisyearspricelevelis114,overtheyeartheinflationrate
hasbeen
A) 14percent.
B) 114percent.
C) 12percent
D) 100percent.
Answer: A
Topic: StudyGuideQuestion,InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

73) Ofthefollowingsequencesofpricelevels,whichcorrectlyrepresentsa5percentinflationrate?
A) 100,100,100,100
B) 100,105,105,105
C) 100,105,110,115
D) 100,105,110.25,115.76
Answer: D
Topic: StudyGuideQuestion,InflationandthePriceLevel
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation685

74) Thecommoditysubstitutionbiasisthat
A) consumerssubstitutehigh-qualitygoodsforlow-qualitygoods.
B) governmentspendingisagoodsubstituteforinvestmentexpenditures.
C) nationalsavingandforeignborrowingareinterchangeable.
D) consumersdecreasethequantitytheybuyofgoodswhoserelativepricesriseandincrease
thequantityofgoodswhoserelativepricefalls.
Answer: D
Topic: StudyGuideQuestion,CommoditySubstitutionBias
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

4NewsBasedQuestions
1) TheNewYorkTimesreportedinnovember2008that240,000additionalpeoplelosttheirjobs
whichincreasedtheunemploymentrateto6.5percent.Inaddition,itwasnotedthatalarge
numberofcollegegraduatesweretakingjobsthatdonotrequireacollegedegree.Itwasalso
expectedthatteenswillbethrownoutofthelabormarket....causingyouthstomissexperience
thatcouldhelpthemprepareforhigher-skilledjobs.
Thearticlereflectstheideathatunemploymentisaproblembecauseitresultsin
A) alossofhumancapital.
B) fewerdiscouragedworkers.
C) alossofincome.
D) adecreaseinthelaborforce.
Answer: A
Topic: Unemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

2) ThetablebelowshowsdataregardingGermanyslabormarket.
Numberof
LaborForce
Employed
Population
(millions)
(millions)
(millions)
Year
2006
43.7
39.01
82.3
2007
43.7
39.06
82.2
2008
43.6
39.8
82.1
ThedatashowthatGermanysunemploymentratein2007was
A) 9.8percent.
B) 8.4percent
C) 5.6percent
D) Moreinformationisneededtoanswerthisquestion.
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

686ParkinMacroeconomics,TenthEdition

3) ThetablebelowshowsdataregardingGermanyslabormarket.
Numberof
LaborForce
Employed
Population
(millions)
(millions)
(millions)
Year
2006
43.7
39.01
82.3
2007
43.7
39.06
82.2
2008
43.6
39.8
82.1
ThedatashowthatGermanysunemploymentratebetween2007and2008
A) increased.
B) decreased
C) stayedthesame.
D) cannotbedeterminedbecausethepopulationdecreased.
Answer: B
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

4) ThetablebelowshowsdataregardingGermanyslabormarket.
Numberof
LaborForce
Employed
Population
Year
(millions)
(millions)
(millions)
2006
43.7
39.01
82.3
2007
43.7
39.06
82.2
2008
43.6
39.8
82.1

Working-age
Population
(millions)
54.9
54.7
54.6

ThedatashowthatGermanysemployment-to-populationratiois________in2007.
A) 92percent
B) 47.5percent
C) 67percent
D) 80percent
Answer: C
Topic: Employment-to-PopulationRatio
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation687

5) ThetablebelowshowsdataregardingGermanyslabormarket.
Numberof
LaborForce
Employed
Population
(millions)
(millions)
(millions)
Year
2006
43.7
39.01
82.3
2007
43.7
39.06
82.2
2008
43.6
39.8
82.1

Working-age
Population
(millions)
54.9
54.7
54.6

ThedatashowthatGermanyslaborforceparticipationrateis________in2007.
A) 80percent
B) 47.5percent
C) 67percent
D) 78percent
Answer: A
Topic: LaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

6) AnarticleintheFinancialTimesreportsonatrendbycollegestudentstotakeayearoffafter
graduationgiventhelackofsuccessinfindingajob.InasurveypublishedlastmonthbyTMP
Worldwide...54percentofthefinal-yearundergraduateintervieweeswerethinkingabout
takingagapyearandonein10wasplanningtowaitforayeartoescapethefinancialchaosand
waitfortheeconomytoeitherimproveorforthepicturetobecomeclearer.
www.ft.com,10/13/2008
Thesechoicesaddtothefluctuationsseeninthe________asworkersleavethelaborforcegiven
theirunsuccessfuljobsearches.
A) laborforceparticipationrate
B) employmentrate
C) efficiencywage
D) inflationrate
Answer: A
Topic: LaborForceParticipationRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

688ParkinMacroeconomics,TenthEdition

7) NPR(CertainGreenIndustriesHaveJobOpenings,November12,2008)reportedonastory
aboutwindturbinemanufacturersinOhiohavingtroublefindingskilledworkers.Thereport
notedthatasaresulttensofthousandsofpeoplehavingbeenlaidoff,thereisahugepoolof
job-seekers.Thefirmsclaimtooffergoodpayandbenefits.ArepresentativefromtheUnited
Steelworkersclaimthattheirunionmembershaveeasilytransferrableskills,butthepayistoo
low,around$30,000annually.AmanageratApolloAlliancesaysthatworkersinthenew
industryneeddifferentskillsthanthoseintheoldsteelindustry.
Thetypeofunemploymentdescribedinthestoryis________unemployment.
A) cyclical
B) structural
C) frictional
D) efficiencywage
Answer: B
Topic: UnemploymentTypes
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

8) Reflectingthestateoftheeconomyin2008,theBureauofLaborStatisticsreportedinOctober
thatover1000jobswerelostinthelegalservicessector.Forexample,onefirminChicago
statedthatithadfired54lawyersin2008.Arepresentativefromthefirmstatedthatmosthad
workedinitsrealestatedivision.
www.nytimes.com,11/11/2008
Thelawyersthatwerefiredareanexampleof________unemployment.
A) frictional
B) structural
C) efficiencywage
D) cyclical
Answer: D
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation689

9) Inlate2006,theunemploymentrateincreasedfrom4.4percentto4.5percent.Itwasreported
thatnewjobswerecreatedinseveralsectorsincludingaccounting,engineeringservices,
computerdesignandeducation.Theseincreasesoffsetjoblossesintheconstructionand
automobileindustries.Atthe
sametime,thenaturalunemploymentratewasestimatedtobeabout5.5percent
www.nytimes.com,12/9/2006
Basedonthestory,thelabormarketreflects
A) apositiveoutputgap.
B) anegativeoutputgap.
C) cyclicalunemployment.
D) efficiencywages.
Answer: A
Topic: OutputGap
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

10) InflationinVietnamroseto27percentinJuly2008thehighestinflationrateinAsia.
Squeezedonallsides,peoplearecuttingbackonfood,limitingtravel,lookingforsecondjobs,
delayingmajorpurchasesandwaitingforthecostofaweddingtogodownbefore
marrying...Giventhisslowdown,Vietnam...isscalingbackitsplansforgrowthandeconomic
development....Somearelosingconfidenceintheabilityofthegovernmenttomanagethe
economy.Andrumorsofpriceincreaseshavecausedpanicbuyingoffuelandrice.
www.nytimes.com,8/23/2008
Thestoryprovidesanexampleofhowinflation
A) redistributesincome.
B) divertsresourcesfromproduction.
C) leadstoincreasesintheconsumerpriceindex.
D) canleadtochangesintheCPImarketbasket.
Answer: B
Topic: Inflation
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

11) In2000,youcouldbuyaCadillacDTSfor$45,000.In2011,theCadillacDTSsoldfor$55,000.
Whilebothmodelsincludeanti-lockbrakesandairbags(alongwithothersimilarfeatures),the
2011modelalsoincludessatelliteradioandnewtechnologythatprovidesimprovedgas
mileageandsaferdriving.IftheCadillacDTSwasincludedintheCPIbasket,itwouldcreate
A) adownwardbiasintheinflationrate.
B) anupwardbiasintheCPIasaresultofqualitychangebias.
C) anupwardbiasintheCPIasaresultofcommoditysubstitutionbias.
D) adownwardbiasintheCPIasaresultofnewgoodsbias.
Answer: B
Topic: BiasedCPI,QualityImprovement
Skill: Conceptual
Questionhistory: Modified10thedition
AACSB: ReflectiveThinking

690ParkinMacroeconomics,TenthEdition

12) ThetablebelowshowsthepriceindexforZimbabwestartingin2000.
Year
2000
2001
2002
2003
2004
2005
2006

PriceIndex
100.0
173.4
404.37
1880.5
8462.2
28,586.6
319,222.5

www.econstats.com
WhichofthefollowingstatementscorrectlydescribethebehaviorofpricesinZimbabwe?
i. ThecostoftheCPIbasketincreased.
ii. Theinflationratewas73.4percentbetween2000and2001.
A) ionly
B) iionly
C) bothiandii
D) neitherinorii
Answer: C
Topic: Inflation
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

13) ThetablebelowshowsthepriceindexforZimbabwestartingin2000.
Year
2000
2001
2002
2003
2004
2005
2006

PriceIndex
100.0
173.4
404.37
1880.5
8462.2
28,586.6
319,222.5

www.econstats.com
Thedatashowthat
A) theinflationratebetweenthebaseyearand2001is73.4percent.
B) newgoodsbiasandqualitychangebiasareresponsibleformostofZimbabwesinflation.
C) theinflationratebetween2005and2006was319.2percent.
D) whileZimbabweexperiencedahighpricelevel,itdidnotexperiencehighinflation.
Answer: A
Topic: Inflation
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation691

14) ThetablebelowshowsthepriceindexforChinastartingin2000.
Year
2000
2001
2002
2003
2004
2005
2006

PriceIndex
100.0
100.73
99.95
101.12
105.06
106.95
108.52

www.econstats.com
WhichofthefollowingstatementscorrectlydescribethebehaviorofpricesinChina?
A) ThecostoftheCPIbasketdecreasedin2002.
B) Chinaexperiencedahighpricelevelandhighinflation.
C) Inflationreached73%betweenthebaseyearand2001.
D) Theinflationratebetween2005and2006was14.4percent.
Answer: A
Topic: Inflation
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

15) ThetablebelowshowsthepriceindexforChinastartingin2000.
Year
2000
2001
2002
2003
2004
2005
2006

PriceIndex
100.0
100.73
99.95
101.12
105.06
106.95
108.52

www.econstats.com
Theinflationratebetween2004and2005was
A) 3.9percent
B) 2.8percent
C) 1.8percent
D) 0.7percent.
Answer: C
Topic: Inflation
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

692ParkinMacroeconomics,TenthEdition

16) ABCnewsinAustraliareportedthattheaverageannualwagein2008was$13,308.Tocalculate
therealwagerateinAustralia,youwouldneedtoknow
A) Australiasinflationratebetween2007and2008.
B) Australiaspricelevelin2008.
C) thecoreinflationrateinAustraliain2008.
D) theexchangeratebetweentheUSdollarandtheAustraliandollar.
Answer: B
Topic: RealWageRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

17) ThetablebelowshowsVietnamspriceindexbetween2004and2007.
Year
2004
2005
2006
2007

PriceIndex
115.15
124.65
134
145.12

www.econstats.com
Fromthedata,wecanconcludethat
A) theinflationrate2005and2006was7.5percent.
B) foodandenergypricesinVietnamwereincreasingbetween2004and2007.
C) commoditysubstitutionbiasoccurredoverthefouryears.
D) deflationoccurredbetween2005and2006aspriceincreasedmoreslowlythanin2004.
Answer: A
Topic: Inflation
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

5EssayQuestions
1) Whyisunemploymentaproblem?
Answer: Unemploymentisaproblemforboththenationandfortheunemployedworker.Forthe
nation,unemploymentrepresentslostproductionandlostincomes.Thelostincomeis
alsoamajorproblemfortheunemployedworker.Inthelongrun,theworkeralsosuffers
alossofhumancapitalwhichcanpermanentlydamagetheworkersfuturejobprospects.
Topic: Unemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

Chapter5MonitoringJobsandInflation693

2) HowdoestheCurrentPopulationSurveydetermineifapersonshouldbecountedinthelabor
force?
Answer: Tobeinthelaborforce,apersonmusteitherbeemployedorunemployed.Tobecounted
asemployed,intheweekpriortothesurveythepersonmusteitherhaveworkedfor
payforonehourormoreorelseworkedwithoutpayforfifteenhoursormoreina
family-ownedbusinessorelsebeentemporarilyabsentfromhisorherjob.Tobecounted
asunemployedinthesurvey,thepersonmusthavehadnojob,beenavailableforwork,
andeithermadespecificeffortstofindworkwithinthepreviousfourweeksorelsebe
waitingtoberecalledtoajobfromwhichtheywerelaidoff.
Topic: PopulationSurvey
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: Communication

3) Howistheunemploymentratecalculated?Includeinyouranswertheprocessbywhichthe
U.S.CensusBureauclassifiesthedataitcollectsinitsCurrentPopulationSurvey.
Answer: TheU.S.CensusBureauconductstheCurrentPopulationSurveywhichasksquestions
abouttheageandemploymentstatusofhouseholdmembers.Thepopulationisdivided
intotheworking-agepopulation(everyone16orolderwhoisavailabletowork)andall
theothers.Theworkingagepopulationisdividedintothelaborforceandthosenotin
thelaborforce.Thelaborforceincludesallthosewhoareworking(eitherpart -timeor
full-time)andthosewhoareunemployed.Theunemploymentrateistheratioofthe
unemployedtothelaborforcemultipliedby100toconvertitintoapercentage.
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

4) ThecurrentU.S.populationisabout300millionyetthecurrentU.S.laborforceisonlyabout
150million.Whatsubtractionsaremadefromthepopulationnumbertosetitequaltothelabor
force?
Answer: Thepopulationisfirstreducedbyeliminatingthosewhoarelessthan16yearsofageor
institutionalized.Thenthosewhoareneitherworkingnorlookingforworkare
eliminated.Thisleavesjustthosewhoareemployedorunemployed.Thesetwogroups
togethercomprisethelaborforce.
Topic: EmploymentCalculations
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: Communication

694ParkinMacroeconomics,TenthEdition

5) Whatisthedefinitionoftheunemploymentrate?Howarepart -timeworkersanddiscouraged
workerstreatedwhencalculatingtheunemploymentrate?
Answer: Thedefinitionoftheunemploymentrateis[(numberofunemployed)(laborforce)]
100.Inthiscalculation,thelaborforceequalsthesumofemployedplusunemployed
people.Part-timeworkersarecountedasemployed.Thuspart-timeworkersarecounted
inthelaborforcebutareNOTcountedasunemployed.Discouragedworkersarepeople
whohavestoppedlookingforworkandsoarenotinthelaborforce.Hence,when
calculatingtheunemploymentrate,discouragedworkersarecountedinneitherthe
numberofunemployednorinthelaborforce.
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

6) Howdoestheunemploymentratechangeinarecessionandinanexpansion?
Answer: Duringarecession,theunemploymentrategenerallyincreases.Duringanexpansion,the
unemploymentrategenerallydecreases.
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

7) Definetheunemploymentrateandlabor-forceparticipationrate.Discussthedifferences
betweenthesetworates.
Answer: Theunemploymentrateisdefinedas[(numberofunemployed) (laborforce)]100.and
thelaborforceparticipationrateisdefinedasis[(laborforce)(working-age
population)]100.Thetwomeasuresgivedifferentperspectivesonthelabormarket.
Thelaborforceparticipationratetellsthepercentageoftheworking -agepopulationthat
iseitherworkingorisavailableforwork.Theunemploymentratetellsthepercentageof
thepeopleworkingoravailableforwork(thelaborforce)whodonothavejobs.
Topic: UnemploymentRateandLaborForceParticipationRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

8) Whatisamarginallyattachedworker?
Answer: Amarginallyattachedworkerisapersonwithoutajob,whoisavailableandwillingto
work,butwhohasstoppedlookingintherecentpast.Onetypeofmarginallyattached
workerisadiscouragedworker.Essentially,adiscouragedworkerissomeonewho
wantsajobbuthasgrownsodiscouragedaboutfindingone,heorshehasstopped
looking.
Topic: MarginallyAttachedWorkers
Skill: Conceptual
Questionhistory: New10thedition
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation695

9) Whatisadiscouragedworker?Howdotheyaffecttheunemploymentrate?
Answer: Adiscouragedworkerisapersonwithoutajob,whoisavailableandwillingtowork,but
whohasnotmadespecificeffortstofindajobwithinthepastfourweeks.Essentially,a
discouragedworkerissomeonewhowantsajobbuthasgrownsodiscouragedabout
findingone,heorshehasstoppedlooking.Discouragedworkersarenotinthelabor
forcesoinonesensetheydonotaffecttheunemploymentrate.However,iftheyre -enter
thelaborforcetolookforwork,theunemploymentwillincreasebecausewhiletheyare
searchingtheyarenowcountedamongtheranksoftheunemployed.
Topic: DiscouragedWorkers
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

10) Explainhowthelaborforceparticipationrateandtheunemploymentratechangeinarecession.
Answer: Thelaborforceparticipationratetendstodecreaseduringarecessionasmoreworkers
becomediscouraged.Theunemploymentrateincreasesduringarecessionbecausethere
arefewerjobs.
Topic: LaborMarketinaRecession
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

11) Listanddefinethethreetypesofunemployment.
Answer: Thethreetypesarefrictional,structuralandcyclical.Frictionalunemploymentisdefined
asthenormalturnoverinthelabormarketofworkersenteringandleavingthework
force.Structuralunemploymentiscausedbytechnologicalchangeorinternational
competitionthatcausesjobstodisappear.Cyclicalunemploymentiscausedbybusiness
cyclefluctuationsthatchangetheunemploymentrate.
Topic: TypesofUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

12) Whatarethethreetypesofunemploymentandhowdotheychangeoverthebusinesscycle?
Answer: Thethreetypesofunemploymentarefrictional,structural,andcyclical.Ofthesethree
types,thefirsttwofrictionalandstructuralunemploymenthavenostrongrelationship
tothebusinesscycle.Thethirdtype,cyclicalunemployment,howeveristheresultofthe
businesscycle.Whentheeconomyisinarecessionandpeoplelosetheirjobsasaresultof
therecession,theunemployedworkersarecyclicallyunemployed.Conversely,whenthe
economyisanexpansion,cyclicalunemploymentdecreases.Hence,cyclical
unemploymentincreasesduringarecessionanddecreasesduringanexpansion.
Topic: TypesofUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: Communication

696ParkinMacroeconomics,TenthEdition

13) Giveanexampleofafrictionallyunemployedperson.
Answer: Apersonwhoiswithoutajobbecauseofanormallabormarketturnoverisfrictionally
unemployed.Forinstance,astudentwhojustgraduatedfromschoolandislookingfora
jobisfrictionallyunemployedasisaworkerwhoquittolookforabetterjob.
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

14) Defineandgiveanexampleofhowaspelloffrictionalunemploymentcanbegin.
Answer: Frictionalunemploymentistheunemploymentresultingfromnormalturnoverinthe
labormarket.Forinstance,therearealwayspeopleenteringorreenteringthelaborforce
(entrantsandreentrants)andwhilethesepeoplelookforwork,theyarefrictionally
unemployed.Similarly,therearealwayssomepeoplewhoquittheirjobstolookfor
somethingbetter,andthesepeoplearefrictionallyunemployed.And,thereisalwaysa
normalebbandflowamongfirmsassomegainsaleswhileotherslosethem.Thelosers
mayreleaseworkersandthesepeoplealsoarefrictionallyunemployed.
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

15) Canfrictionalunemploymenteverbetotallyeliminated?Explainyouranswer.
Answer: Frictionalunemploymentarisesfromnormallabormarketturnover.Becausethistypeof
unemploymentisassociatedwithnormalchanges,itisimpossibletobeeliminated.
Indeed,somefrictionalunemploymentispurelyvoluntary,withtheseunemployed
workerschoosingtobecomeunemployedbecausetheyexpecttofindajobthatismore
satisfying.
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

16) Explainthedifferencebetweenfrictionalandstructuralunemployment.
Answer: Frictionalunemploymentismoreshorttermandisassociatedwithpeoplechangingjobs
andenteringthelaborforce.Structuralunemploymentismorelongtermandis
associatedwithchangesinthestructureoftheeconomythatrequirepeopletolearnnew
skills.
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

17) Giveanexampleofastructurallyunemployedperson.
Answer: Apersonwholoseshisorherjobbecausehisfirmhadtoclosebecauseofforeign
competitionorbecauseheorshenolongerpossessestheskillsnecessaryforajobis
structurallyunemployed.
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation697

18) Defineandgiveanexampleofhowaspellofstructuralunemploymentcanbegin.
Answer: Structuralunemploymentariseswhenchangesintechnologyorinternationalcompetition
changestheskillsnecessaryforjobsorchangethelocationofjobs.Forinstance,
technologicalchange,suchastheinventionofthepersonalcomputer,canswitchthe
skillsneededforjobs,sayfromtheabilitytorepairtypewriterstotheabilitytorepair
computers.Inthiscase,thepeoplewholosetheirjobsanddonothavethenecessary
skillstoperformthenewjobsarestructurallyunemployed.Inaddition,therearetimes
whenforeigncompetitioncauseslargedownscalinginsectorsoftheU.S.economyasU.S.
firmsfindthattheycannotcompetewithforeignfirms.Inthiscase,theU.S.workerswho
losetheirjobsdonotgooverseastotakejobsintheexpandingforeigncompanies,sothe
workersarestructurallyunemployed.
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

19) Giveanexampleofacyclicallyunemployedperson.
Answer: Apersonwholoseshisorherjobbecauseofarecessioniscyclicallyunemployed.
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

20) Explainwhattypeofunemploymentchangeswiththebusinesscycleandhowitchanges.
Answer: Cyclicalunemploymentistheunemploymentthatchangeswiththebusinesscycle.
Cyclicalunemploymentriseswhentheeconomyisintherecessionpartofabusiness
cycleanddecreaseswhentheeconomyisintheexpansionpartofthebusinesscycle.
Topic: CyclicalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

21) Whyisthereunemploymentevenwhentheeconomyisatfullemployment?
Answer: Thereisunemploymentevenatfullemploymentbecausetherealwayswillbe
unemployment.Unemploymentisanaturaloccurrenceinanyeconomywithchanges,
suchashighschoolorcollegegraduatesenteringthelaborforce,ortechnological
advancesinonesector,orconsumerpreferenceschangingtofavoroneproductover
another.Frictionalandstructuralunemploymentwillalwaysexist.Cyclical
unemployment,however,isadifferentmatter.Cyclicalunemploymentdoesnotseemto
havethesamedegreeofinevitabilityandhencefullemploymentisdefinedasoccurring
whencyclicalunemploymentequalszero.
Topic: FullEmployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

698ParkinMacroeconomics,TenthEdition

22) Whatistherelationshipbetweenthenaturalunemploymentrate,theunemploymentrate,
potentialGDP,andactualGDP?
Answer: WhentheeconomyisatpotentialGDP,theunemploymentrateisthenatural
unemploymentrate.IfactualGDPislessthanpotentialGDP,thentheunemployment
rateexceedsthenaturalunemploymentrate.AndifactualGDPexceedspotentialGDP,
thentheunemploymentrateislessthanthenaturalunemploymentrate.
Topic: ActualandPotentialGDP
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

23) Explaintherelationship(s)betweenfullemployment,cyclicalunemployment,thenatural
unemploymentrate,andpotentialGDP.
Answer: Theeconomyisatfullemploymentwhenthereisnocyclicalunemployment.The
unemploymentrateatfullemploymentiscalledthenaturalunemploymentrate.Because
thereisnocyclicalunemployment,thenaturalunemploymentrateiscomprisedofonly
frictionalandstructuralunemployment.Thelevelofoutputthattheeconomywould
produceifitwasatfullemploymentiscalledpotentialGDP.
Topic: ActualandPotentialGDP
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

24) Considerthefollowingstatement:RealGDPandpotentialGDParealwaysequal.Isthis
statementtrueorfalse?Explainyouranswer.
Answer: RealGDPoftendiffersfrompotentialGDP.RealGDPequalspotentialGDPonlywhen
theeconomyisatfullemployment.However,theeconomyisnotalwaysatfull
employment.Whenemploymentislessthanfullemployment,realGDPislessthan
potentialGDPandtheeconomyisinarecession.Whenemploymentexceedsfull
employment,realGDPexceedspotentialGDPandtheeconomyisinanexpansion.
Topic: ActualandPotentialGDP
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

25) WhatispotentialGDPandwhatistherelationshipbetweenactualandpotentialrealGDP?
Answer: ThequantityofGDPatfullemploymentiscalledpotentialGDP.Overthebusinesscycle,
realGDPfluctuatesaroundpotentialGDP.Whentheunemploymentrateishigherthan
thenaturalrate,realGDPislessthanpotentialGDPandwhentheunemploymentrateis
lowerthanthenaturalrate,realGDPexceedspotentialGDP.
Topic: ActualandPotentialGDP
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation699

26) ExplaintherelationshipbetweenrealGDPandpotentialGDPandbetweentheunemployment
rateandthenaturalunemploymentrateastheeconomymovesthroughabusinesscycle.
Answer: PotentialGDPisthelevelofGDPwhentheeconomyisatfullemployment.RealGDPis
thelevelofGDPandcanbeaboveorbelowpotentialGDPdependingonwhether
employmentisaboveorbelowfullemployment.Thenaturalunemploymentrateisthe
unemploymentratewhentheeconomyisatfullemployment.Theunemploymentrate
canbeaboveorbelowthenaturalunemploymentrate.Inarecession,realGDPisless
thanpotentialGDPandunemploymentexceedsthenaturalrate.Inanexpansion,real
GDPisgreaterthanpotentialGDPandunemploymentislessthanthenaturalrate.
Topic: ActualandPotentialGDP
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

27) WhatistherelationshipoverthebusinesscycleofpotentialGDPandrealGDP?
Answer: Thelevelofoutputthattheeconomywouldproduceifitwasatfullemploymentiscalled
potentialGDP.However,theeconomyisnotalwaysatfullemployment.Inarecession,
employmentislessthanfullemploymentandsorealGDPislessthanpotentialGDP.
And,inanexpansion,employmentcanexceedfullemploymentsothatrealGDPexceeds
potentialGDP.
Topic: ActualandPotentialGDP
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

28) WhatarethethreestagesofconstructingtheCPI?
Answer: ThefirststageistoselecttheCPIbasket.Thebasketisdeterminedbysurveyingthe
spendinghabitsofconsumersbyconductingaConsumerExpenditureSurvey.The
secondstageistocheckthepricesofabout80,000goodsandservicesin30metropolitan
areas.Thischeckingisdoneonamonthlybasis.ThethirdstageistocalculatetheCPI
itself.TocalculatetheCPI,aperiodoftimeisselectedasthebasereferenceperiodand
thecostoftheCPIbasketusingthepricesfromthatperiodiscomputed.ThentheCPIin
anyothermonthequals100timesthequotientofthecostofthebasketusing
current-periodpricesdividedbythecostofthebasketinthereferencebaseperiod.
Topic: ConsumerPriceIndex
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

29) ThemarketbasketusedtocalculatetheCPIisrevisedmonthlytomoreaccuratelydepict
consumerschoices.ThepricedatafortheCPIarecollectedeverymonth.Aretheprevious
sentencestrueorfalse?
Answer: Thefirstsentenceisfalseandthesecondistrue.ThepointoftheCPIistodeterminehow
thepricesofafixedbasketofgoodsandserviceschangeovertime,sotheCPIbasketis
revisedonlyinfrequently.However,thepricesforthegoodsandservicesinthebasket
arecollectedmonthlysothattheCPIcanbecomputedmonthly.
Topic: ConsumerPriceIndex
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

700ParkinMacroeconomics,TenthEdition

30) Assumethatafteryougraduate,youmovetoasimpleeconomyinwhichonlythreegoodsare
producedandconsumed:fish,fruit,andmeat.SupposethatonJanuary1,fishsoldfor$2.50per
pound,meatwas$3.00perpound,andfruitwas$1.50perpound.Attheendoftheyear,you
discoverthatthecatchwaslowandthatfishpriceshadincreasedto$5.00perpound,butfruit
pricesstayedat$1.50perpound,andmeatpriceshadactuallyfallento$2.00.Canyousaywhat
happenedtotheoverallCPI,intermsofwhetheritincreased,decreased,orstayedthesame?Do
youhaveenoughinformationtocalculatetheinflationrate?Note,thisproblemrequiresno
calculation;juststateandexplainyouranswers.
Answer: YoucannotsaywhathappenedtotheCPIbecauseyoudonotknowthequantitiesinthe
basket.Youalsodonothaveenoughinformationtodeterminetheinflationratebecause
youneedtheCPIatthebeginningandtheendoftheyeartocomputetheinflationrate.
Topic: ConsumerPriceIndex
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

31) WhatisinflationandhowisitmeasuredusingtheConsumerPriceIndex?
Answer: Theinflationrateisthepercentagechangeinthepricelevelfromoneyeartothenext.In
otherwords,itisthegrowthrateofthepricelevel.TheCPIisameasureofthepricelevel
andsocanbeusedtocalculatetheinflationrate.
Topic: InflationRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

32) ListthefoursourcesofbiasintheCPIandbrieflyexplainthem.
Answer: Therearefourpotentialbiases.Firstisthenewgoodsbias,whichoccurswhennew,
higherpricedgoodsreplaceoldergoods.Secondisthequalitychangebias,whichoccurs
whentheCPIfailstotakeaccountofqualityimprovementsthatraiseprices.Thirdisthe
commoditysubstitutionbias,whichoccurswhenconsumersshifttheirpurchasesaway
fromgoodswhoserelativepricesrisetowardlowerpricedgoods.Lastistheoutlet
substitutionbias,whichbecausewithhigherprices,peopleswitchtolow-costdiscount
stores.
Topic: BiasedCPI
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation701

33) IstheCPIabiasedmeasureoftheinflationrate?Explainyouranswer.
Answer: ThereareatleastfoursourcesofbiasintheCPImeasure.Thefirstbiasisthenewgoods
bias,whichreferstothefactthatnewgoodsarecontinuouslyreplacingoldones.Because
thenewgoodsareoftenbothofhigherqualityandhigherpriced,theirintroduction
complicatesmeasuringtheCPI.ThenewgoodsbiasbiasestheCPIupwards.Second,the
CPIisnotalwaysadjustedforimprovementsinthequalityoftheproducts,whichisthe
qualitychangebias.Apricehikethatreflectsaqualityincreaseoftenismistakenly
recordedasonlyapricehike,withnorecognitiongiventothehigherquality.Third,
consumerssubstituterelativelylowerpricedgoodsforgoodsthatincreaseinprice,which
iscalledcommoditysubstitution.However,theCPIdoesnttakethissubstitutioninto
account,therebygivingrisetothecommoditysubstitutionbias.Fourth,whenfacedwith
pricehikes,consumersswitchawayfrombuyingatfullservicestorestobuyingfrom
discountstoresbecausethepricesinthediscountstoresarelower.Onceagain,theCPI
doesnottakeaccountofthisoutletsubstitutionandsotheCPIsuffersfromtheoutlet
substitutionbias.
Topic: BiasedCPI
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

34) ThenewgoodsbiasputsadownwardbiasintotheCPIanditsmeasureoftheinflationrate.Is
theprevioussentencecorrectornot?Explainyouranswer.
Answer: ThesentenceisfalsebecausethenewgoodsbiasputsanupwardbiasintotheCPIandits
measureoftheinflationrate.Thenewgoodsbiasoccurswhennew,higherqualityand
moreexpensivegoodsreplaceolder,lowerqualityandlessexpensivegoods.Partofthe
expenseofthenewgoodsistopayforthehigherqualityofthenewgoods.But,ifthe
priceisnotadjusted(downward)totakeaccountofthehigherquality,incorporatingthe
newgoodintotheCPIleadstoanupwardbiasinthepricesthatgotomakeuptheCPI
andhencealsoanupwardbiasintheinflationrate.
Topic: TheBiasedCPI,NewGoodsBias
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

702ParkinMacroeconomics,TenthEdition

35) Whatisthecommoditysubstitutionbias?WhateffectdoesithaveontheCPI?
Answer: Thecommoditysubstitutionbiasreferstothefactthatpeopleswitch(substitute)away
fromgoodsandservicesthathaveriseninpriceandbuymoregoodsandservicesthat
havenotrisenasmuchinprice.ThusifthenpriceofCokerises20whilePepsisprice
doesnotchange,manypeoplewillsubstitutePepsiforCoke.Thecommoditysubstitution
biasintheCPIoccursbecausetheCPIusesafixedbasketofgoodsandservices.So,ifthe
basketcontains,say,10bottlesofCokeand8bottlesofPepsi,thebasketwillnotchange
eventhoughpeoplechangetheirbuyingpatternsinfavorofPepsiandawayfromCoke.
Thechangeinpeoplesbuyingpatternsoffsets,atleasttoadegree,theeffectofhigher
prices.IntheCoke/Pepsicase,bypurchasingmorePepsiandlessCoke,peoplehave
insulatedthemselvesfrompartoftheeffectofthehigherpriceofCoke.HowevertheCPI
doesnottakethischangeintoaccountandsotheCPIreflectsthefulleffectofthehigher
priceofCoke,therebyoverstatingtheactualinflationthatpeopleexperience.
Topic: TheBiasedCPI,CommoditySubstitutionBias
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

36) ThebiasintheCPIdistortsprivatecontractsbecauseafuturepaymentthatislinkedtotheCPI
willberaisedabovethetrueincreaseinthepricelevel.Istheprevioussentencetrueorfalse?
Answer: Thesentenceiscorrect.Thefactthatthepaymentsincreasebymorethanthetrueincrease
inthepricelevelmeansthatonepartytothecontractbenefitsmore,thehigherthe
inflationrate.
Topic: TheBiasedCPI,PrivateContracts
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

37) ExplaintheCPIbiasandhowitcandistortprivatecontractsandincreasegovernmentoutlays.
Answer: TheCPIbiasisthepointthattheCPIoverstatesthetrueinflationrate.Theamountofthe
biashasbeenestimatedat1.1percentagepointsperyear.Thuswhenworkerssigna
contractthatlinkstheirwagestotheCPIinordertoadjustthewagestooffsetinflation,
theadjustmentistoolarge.Wagesrisebymorethanisnecessarytokeeppacewith
inflation.Thusacontractthatmighthavebeendesignedtokeepworkersevenwith
inflationisdistortedsothatworkersactuallygain.Similarly,manygovernmentoutlays,
suchasSocialSecurity,arelinkedtotheCPI.Thustheadjustmentintheseexpenditures
exceedstheamountnecessaryforinflation,andhencetheamountofthegovernments
outlaysincreasesbymorethanisappropriateforinflation.
Topic: TheBiasedCPI,GovernmentOutlays
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: Communication

Chapter5MonitoringJobsandInflation703

38) What,ifany,istheimpactoftheCPIbiasongovernmentspending?
Answer: Aboutone-thirdofgovernmentoutlays,suchasSocialSecurity,arelinkedtotheCPIso
thatthesesourcesofgovernmentspendingincreasewhentheCPIincreases.Becausethe
CPIoverstatestheactualinflationrate,governmentspendingincreasesbymorethanis
warrantedbyinflation.HencetheCPIbiasincreasestheamountofgovernmentoutlays.
Topic: TheBiasedCPI,GovernmentOutlays
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

39) HowistheGDPdeflatoriscalculated.
Answer: TheGDPdeflatorequals100timesthenominalGDPdividedbyrealGDP,orintermsof
symbols,theGDPdeflatorequals(100)(nominalGDP)(realGDP).
Topic: GDPDeflator
Skill: Recognition
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

6NumericandGraphingQuestions
1) Theunemploymentrateis6percent.Ifthepopulationis300million,andthenumber
unemployedis6millionandthenumberemployedis94million,whatisthesizeofthelabor
force?
Answer: Thelaborforceisthesumofthenumberofemployedpeopleplusthenumberof
unemployedpeople.Hencethelaborforceequals94million+6million=100million.
Topic: PopulationSurvey
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

2) Supposethecurrentunemploymentrateis5percent,thelaborforceis400millionpeople,the
laborforceparticipationrateis80percentandtheworking-agepopulationis500million
people.Whatnumberofpeopleareunemployed?
Answer: Thenumberofunemployedpeopleequalsthelaborforcemultipliedbythe
unemploymentrate.Sothenumberofunemployedpeopleis(400million) (5percent)=
20millionpeople.
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

3) SupposethattheU.S.populationis275million.Alsoassumethatthelaborforceis135million
andthat130millionpeopleareemployed.Calculatetheunemploymentrate.
Answer: Theunemploymentrateis(5millionunemployed) (135millionlaborforce) 100= 3.7
percent.
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

704ParkinMacroeconomics,TenthEdition

4) Supposethepopulationis220millionpeople,thelaborforceis150millionpeople,thenumber
ofpeopleemployedis130millionandtheworking-agepopulationis175millionpeople.What
istheunemploymentrate?
Answer: Theunemploymentrateis(20millionunemployed) (150millionlaborforce)100=
13.3percent.
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

5) Supposetheworking-agepopulationis150million,thelaborforceis125million,and
employmentis120million.
a) Whatistheunemploymentrate?
b) Nowsupposethat2millionstudentsgraduatefromcollegeandbegintolookforjobs.What
isthenewunemploymentrateifnoneofthestudentshavefoundjobsyet?
c) Supposethatall2millionstudentsfindjobs.Whatistheunemploymentratenow?
Answer: a) Theunemploymentrateis(5millionunemployed) (125millionlaborforce)100=
4.0percent.
b) Theunemploymentrateis(7millionunemployed)(127millionlaborforce)100=
5.5percent.
c) Theunemploymentrateis(5millionunemployed)(127millionlaborforce)100=
3.9percent.
Topic: UnemploymentRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

6) Supposethereare180millionemployedpeopleand20millionunemployedpeople.
a) Whatistheunemploymentrate?
b) Supposethat5millionunemployedpeoplegiveuptheirsearchforjobsandbecome
discouragedworkers.Whatisthenewofficialunemploymentrate?
Answer: a) Theunemploymentrateis(20millionunemployed) (200millionlaborforce) 100
=10.0percent.
b) Theunemploymentrateis(15millionunemployed) (195millionlaborforce)100
=7.7percent.
Topic: UnemploymentRateandDiscouragedWorkers
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation705

7) Considerthefollowingscenario.Initiallytheeconomyhas90millionpeopleworking,10million
peopleunemployed,and20millionpeoplenotinthelaborforce.Thenprospectsforthe
economyimprove.Fivemillionpeoplewhopreviouslywerenotinthelaborforcenowjointhe
10millionpreviouslyunemployedinlookingforwork.Fornow,theeconomyremainswith90
millionworkers.Whathappenstotheunemploymentrate?
Answer: Theunemploymentraterisesfrom10.0percent,(10millionunemployed) (100million
laborforce)100,to14.3percent,(15millionunemployed)(105millionlaborforce)
100.
Topic: UnemploymentRateandDiscouragedWorkers
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

Category
Totalpopulation
Working-agepopulation
Laborforce
Employed
Unemployed

Numberofpeople
(millions)
246
207
139
133
6

8) Basedontheinformationintheabovetable,whatistheunemploymentrate?Whatisthelabor
forceparticipationrate?
Answer: Theunemploymentrateequals(6millionunemployed) (139millionlaborforce) 100=
4.3percent.Thelaborforceparticipationrateequals(139millionlaborforce) (207
millionworking-agepopulation)100=67.1percent.
Topic: UnemploymentRateandLaborForceParticipationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

9) IfthebaseyearCPIbasketcosts$250andnextyeartheCPIbasketcosts$275,whatisnextyears
CPI?
Answer: TheCPIequals100 ($275/$250)= 110.
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

706ParkinMacroeconomics,TenthEdition

Item
Loavesofbread
Jugsofsoda
Item
Loavesofbread
Jugsofsoda

Quantity
(2010)
20
20

Price
(2010)
$3.00
$2.00

Quantity
(2011)
22
30

Price
(2011)
$4.00
$1.50

10) Thetablesabovegivethepurchasesofanaverageconsumerinasmalleconomy.(These
consumerspurchaseonlyloavesofbreadandjugsofsoda.)Suppose2006isthereferencebase
period.
a) WhatquantitiesareintheCPIbasket?
b) WhatisthecostoftheCPIbasketusing2010prices?
c) WhatisthecostoftheCPIbasketusing2011prices?
d) WhatistheCPIin2007?
Answer: a) ThequantitiesintheCPIbasketarethe2010quantitiesbecause2010isthereference
baseperiod.So,thequantitiesare20loavesofbreadand20jugsofsoda.
b) ThecostoftheCPIbasketusing2010pricesis(20loaves)($3)+(20jugs)($2)=
$100.
c) ThecostoftheCPIbasketusing2011pricesis(20loaves)($4)+(20jugs)($1.50)=
$110.NotethatthequantitiesusedinthiscalculationarethequantitiesintheCPIbasket.
d) TheCPIin2011equals100timesthecostoftheCPIbasketat2011pricesdividedby
thecostoftheCPIbasketat2010(baseperiod)prices.TheCPIequals100 ($110)($100)
=110.
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation707

Item
Shampoo
Pizza
Item
Shampoo
Pizza

Quantity
(2010)
25
15

Price
(2010)
$2.35
$7.50

Quantity
(2010)
25
15

Price
(2011)
$2.50
$7.75

11) Thetablesabovegivethepurchasesofanaverageconsumerinasmalleconomy.(These
consumerspurchaseonlyshampooandpizza.)Suppose2010isthereferencebaseperiod.
a) WhatisthecostoftheCPIbasketin2010and2011?
b) WhatistheCPIin2010andin2011?
c) Whatistheinflationratebetween2010and2011?
Answer: a) For2010theCPIbasketcosts$171.25.For2011theCPIbasketcosts$178.75.
b) For2010,thebaseperiod,theCPIis100.0.For2011theCPIis($178.75/$171.25) 100,
whichis104.4.
c) Betweenthetwoyearstheinflationrateisequalto[(104.4-100.0)/100]100,which
is4.4percent.
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

708ParkinMacroeconomics,TenthEdition

Item
Meals
Parking
Item
Meals
Parking

Quantity
(2010)
100
50

Price
(2010)
$10.00
$100.00

Quantity
(2011)
100
50

Price
(2011)
$12.00
$97.50

12) Thetablesabovegivethepurchasesofatypicalconsumerinacountrycomprisedofonelarge
city.Theseconsumerspurchaseonlyrestaurantmealsandparking.Theyear2010isthe
referencebaseperiod.
a) FindthetotalcostoftheCPIbasketfor2010and2011.
b) WhatistheCPIin2010andin2011?
c) Whatistheinflationratebetween2010and2011?
Answer: a) ThetotalcostoftheCPIbasketin2010equals(100meals) ($10)+(50parking)
($100)=$6,000.ThetotalcostoftheCPIbasketin2011equals(100meals) ($12)+(50
parking)($97.50)=$6,075.Thequantitiesarethesamein2010and2011.Ifthe
quantitiesdiffered,the2010quantitieswouldbeusedbecause2010isthebaseyear.
b) TheCPIin2010is100because2010isthebaseperiod.(Alternatively,theCPIin2010
equals100($6,000)/$6,000)=100.)TheCPIin2011equals100($6075)/($6,000)=
101.25.
c) Theinflationratebetween2010and2011equals100[(101.25-100)(100)]=1.25
percent.
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

Chapter5MonitoringJobsandInflation709

Item
Oranges
Bananas
Chicken
Beef
Bread

Quantity
(2010)
50
100
200
100
300

Price
(2010)
$0.90
$0.50
$2.00
$5.00
$1.75

Price
(2011)
$0.75
$0.95
$2.50
$4.80
$2.00

13) ThetableabovegivestheCPIbasketfor2010.Supposethat2010isthereferencebaseperiod.
a) WhatisthecostoftheCPIbasketin2010?
b) WhatisthecostoftheCPIbasketin2011?
c) WhatistheCPIfor2010?
d) WhatistheCPIfor2011?
Answer: a)
b)
c)
d)

ThecostoftheCPIbasketin2010is$1,520.00.
ThecostoftheCPIbasketin2011is$1,712.50.
TheCPIfor2010is100because2010isthebaseperiod.
TheCPIfor2011equals100[$1,712.50$1,520.00]=112.66.

Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

14) IftheCPIthisyearis175.2andnextyeartheCPIis176.1,whatwastheinflationrateoverthe
year?
Answer: Theinflationrateequals100 [(176.1- 175.2) 175.2]= 0.5percent.
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

15) LastyeartheCPIwas177.1andthisyeartheCPIis180.9.Whatwastheinflationratebetween
thesetwoyears?
Answer: Theinflationrateequals100([(180.9(177.1) 177.1]= 2.1percent.
Topic: InflationRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

710ParkinMacroeconomics,TenthEdition

Year
1997
1998
1999
2000
2001
2002

CPI
152.5
157.0
160.6
163.1
166.7
172.3

16) ThetableabovegivestheU.S.CPIforsixyears.Calculatetheinflationratesbetween1997to
1998,1998to1999,1999to2000,2000to2001,and2001to2002.
Answer: Between1997to1998,theinflationratewas3.0percent.Between1998to1999,the
inflationratewas2.3percent.Between1999to2000,theinflationratewas1.6percent.
Between2000to2001,theinflationratewas2.2percent.Andbetween2001to2002,the
inflationratewas3.4percent.
Topic: InflationRate
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

17) ForeachofthefollowingvaluesofnominalGDPandrealGDP,calculatetheGDPpricedeflator.
a) NominalGDP=$600;realGDP=$800.
b) NominalGDP=$900;realGDP=$900.
c) NominalGDP=$1,200;realGDP=$1,000
Answer: a)
b)
c)

TheGDPdeflatorequals($600 $800) 100,whichis75.

TheGDPdeflatorequals($900$900)100,whichis100.
TheGDPdeflatorequals($1,200$1,000)100,whichis120.

Topic: GDPDeflator
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

18) IfnominalGDPis$230foraperiodandrealGDPis$200forthesameperiod,whatistheGDP
deflatorforthisperiod?
Answer: TheGDPdeflatorequals115,or(100) ($230) ($200).
Topic: GDPDeflator
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

7TrueorFalse
1) Theworking-agepopulationisdividedbetweenthosepeopleinthelaborforceandthose
peopleunemployed.
Answer: FALSE
Topic: PopulationSurvey
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation711

2) Onewaytobeconsideredunemployedistobewithoutajobandlookingforwork.
Answer: TRUE
Topic: PopulationSurvey
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

3) Thelaborforceisthesumoftheworking-agepopulationandthenumberofunemployed
people.
Answer: FALSE
Topic: PopulationSurvey
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

4) Theunemploymentrateequals[(thenumberofpeopleunemployed)/(thepopulation)] 100.
Answer: FALSE
Topic: UnemploymentRate
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

5) Theunemploymentratemeasuresthepercentageoftheworking-agepopulationwhocantfind
ajob.
Answer: FALSE
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

6) Theunemploymentratemeasuresthepercentageofpeopleinthelaborforcewhocantfinda
job.
Answer: TRUE
Topic: UnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

7) Unlikecyclicalunemployment,bothfrictionalandstructuralunemploymentriseduring
recessionsandfallduringexpansions.
Answer: FALSE
Topic: TypesofUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

8) Frictional,structuralandcyclicalunemploymentarethreeclassificationsofunemployment.
Answer: TRUE
Topic: TypesofUnemployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

712ParkinMacroeconomics,TenthEdition

9) Ifaworkeristemporarilylaidoffbecausetheeconomyisinarecession,frictional
unemploymentincreases.
Answer: FALSE
Topic: FrictionalUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

10) Structuralunemploymentusuallylastslongerthanfrictionalunemployment.
Answer: TRUE
Topic: StructuralUnemployment
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

11) Whentheeconomyisatfullemploymenttheunemploymentrateequalsthenatural
unemploymentrate.
Answer: TRUE
Topic: FullEmployment
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

12) Theabsenceofcyclicalunemploymentmeanstheeconomyisatthenaturalunemploymentrate.
Answer: TRUE
Topic: NaturalUnemploymentRate
Skill: Conceptual
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

13) Thenaturalunemploymentrateincreasedsignificantlyduringthe1980sandthe1990s.
Answer: FALSE
Topic: ExplainingEmploymentandWageRates
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

14) TheCPIistheaveragepriceofallgoodsandservicesproducedwithintheeconomy.
Answer: FALSE
Topic: ConsumerPriceIndex
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

15) Thecommoditysubstitutionbiasisthatconsumerssubstitutehigh-qualitygoodsfor
low-qualitygoods.
Answer: FALSE
Topic: CommoditySubstitutionBias
Skill: Recognition
Questionhistory: Previousedition,Chapter5
AACSB: ReflectiveThinking

Chapter5MonitoringJobsandInflation713

8ExtendedProblems
Category
Workingagepopulation
Laborforce
Employment

Number(millions)
222.0
146.8
138.0

1) TheBureauofLaborStatisticsreportedthedatainthetableaboveforOctober2003.
a) Calculatethenumberofpeopleunemployed.
b) Calculatethenumberofpeoplewhoarenotinthelaborforce
c) Calculatetheunemploymentrate.
d) Calculatethelaborforceparticipationrate.
Answer: a) Thelaborforceisthesumofthenumberofpeopleemployedplusthenumberof
unemployed.Sothenumberofpeopleunemployedisthelaborforceminusthenumber
ofemployed:146.8-138.0=8.8million.
b) Thenumberofpeoplewhoarenotinthelaborforceisthedifferencebetweenthe
workingagepopulationandthelaborforce: 222.0-146.8=75.2million.
c) Theunemploymentrateisthenumberofunemployedasapercentageofthelabor
force:(8.8/146.8)100=6.0percent.
d) Thelaborforceparticipationrateisthepercentageoftheworking-agepopulation
whoareinthelaborforce:(146.8/222.0)100=66.1percent.
Topic: PopulationSurvey
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

2) AlaborforcesurveyinBrownlandrecordsthefollowingdata:
Employed:189,000
Unemployed:15,000
Notinthelaborforce:84,000
a) Calculatetheunemploymentrate.
b) Calculatethelaborforceparticipationrate.
Answer: a) Theunemploymentrateisthenumberofunemployedasapercentageofthelabor
force.Thelaborforceisthesumofthenumberofpeopleemployedplusthenumberof
unemployed.Brownlandslaborforceis189,000+15,000=204,000.Sotheunemployment
rateis(15,000/204,000)100=7.4percent.
b) Thelaborforceparticipationrateisthepercentageoftheworking-agepopulation
whoareinthelaborforce.Theworkingagepopulationarethosewhoareinthelabor
forceandthosewhoarenotinthelaborforce.SoBrownlandsworking-agepopulationis
204,000+84,000=288,000,anditslaborforceparticipationrateis
(204,000/288,000)100=70.8percent.
Topic: UnemploymentRateandLaborForceParticipationRate
Skill: Analytical
Questionhistory: Modified10thedition
AACSB: AnalyticalSkills

714ParkinMacroeconomics,TenthEdition

3) AtypicalhouseholdinOrangelandconsumesonlyorangejuiceandshorts.Lastyear,which
wasthebaseyear,thehouseholdspent$400onjuiceand$120onshorts.Inthebaseyear,juice
was$2abottleandshortswere$10apair.Thisyear,juiceis$3abottle,shortsare$12apair,
andatypicalhouseholdhasbought180bottlesofjuiceand14pairsofshorts.
a) WhatisthebasketusedintheCPI?
b) CalculatetheCPIinthecurrentyear.
c) Calculatetheinflationrateinthecurrentyear.
d) Istheinflationratethatyouvecalculatedlikelytobebiased?Whyorwhynot?
Answer: a) TheCPIbasketisthequantitiesboughtinthebaseyear.Inthebaseyear,atypical
householdspent$400onjuiceat$2abottle,sothequantityofjuiceboughtwas
$400/$2=200bottles.Thehouseholdspent$120onshortsat$10apair,sothequantityof
shortsboughtwas$120/$10=12.ThustheCPIbasketis200bottlesofjuiceand12pairs
ofshorts.
b) ThecostoftheCPIbasketlastyearwas$400+$120=$520.ThecostoftheCPIbasket
inthecurrentyearis$3200+$1212=$744.SotheCPIis($744/$520)100=143.1
c) TheinflationrateisthepercentagechangeintheCPI.Becausethelastyearwasalso
thebaseyear,theCPIlastyearwas100.Sotheinflationrateforthecurrentyearis
[(143.1-100)/100]100,whichis43.1percent.
d) ThecalculatedCPIislikelytooverstateinflationbecauseofthecommodity
substitutionbias.Therelativepriceofshortshasfallenfrom5to4bottlesofjuice.This
fallledconsumerstobuymoreshortsandlessjuice.Asaresult,theactualconsumer
basketinthecurrentyearislessexpensivethantheCPIbasket.TheCPIignoresthis
commoditysubstitution,andsooverstatestheinflationrate.
Topic: ConsumerPriceIndex
Skill: Analytical
Questionhistory: Previousedition,Chapter5
AACSB: AnalyticalSkills

112-2 經濟學Lec2,Lec3 - 240417 - 083518
No ratings yet
112-2 經濟學Lec2,Lec3 - 240417 - 083518
89 pages
Macroeconomics 12th Edition Michael Parkin Test Bank 1
100% (96)
Macroeconomics 12th Edition Michael Parkin Test Bank 1
115 pages
ch-2 LS
No ratings yet
ch-2 LS
22 pages
Attachment
No ratings yet
Attachment
4 pages
TABLE 2 - Household Population 15 Years Old and Over and Employment Status, Philippines: 2011 - April 2013
No ratings yet
TABLE 2 - Household Population 15 Years Old and Over and Employment Status, Philippines: 2011 - April 2013
1 page
Chapter 7 Unemployment and Inflation: The Labor Market
No ratings yet
Chapter 7 Unemployment and Inflation: The Labor Market
1 page
Chapter 3 Answers Exercise Sheet
No ratings yet
Chapter 3 Answers Exercise Sheet
5 pages
Chapter 9 Employment and Unemployment: Macroeconomics (Acemoglu/Laibson/List)
100% (2)
Chapter 9 Employment and Unemployment: Macroeconomics (Acemoglu/Laibson/List)
52 pages
Key Variables in The Economy
No ratings yet
Key Variables in The Economy
49 pages
Unemployment and Inflation
100% (1)
Unemployment and Inflation
29 pages
Study Questions 2 (Unemployment and Inflation) PDF
No ratings yet
Study Questions 2 (Unemployment and Inflation) PDF
10 pages
Karl E. Case J Ray C. Fair J Sharon E. Oster - Principles of Economics-Pearson-479-494
No ratings yet
Karl E. Case J Ray C. Fair J Sharon E. Oster - Principles of Economics-Pearson-479-494
16 pages
Chapter Two, Final Labour Supply Note
No ratings yet
Chapter Two, Final Labour Supply Note
21 pages
LATIHAN Employment and Unemployment
No ratings yet
LATIHAN Employment and Unemployment
3 pages
Week 4 Questions With Solutions
No ratings yet
Week 4 Questions With Solutions
5 pages
Le CH-2 2017
No ratings yet
Le CH-2 2017
57 pages
Business Cycles, Unemployment, Inflation: Review
No ratings yet
Business Cycles, Unemployment, Inflation: Review
33 pages
The Labour Force
No ratings yet
The Labour Force
71 pages
Ch-2-Labor Supply-1
No ratings yet
Ch-2-Labor Supply-1
16 pages
Unemployment Worksheet Spring 24
No ratings yet
Unemployment Worksheet Spring 24
2 pages
Unit 6 - Teaching Notes
No ratings yet
Unit 6 - Teaching Notes
26 pages
Parkin.13ge - econ.IM (22) G
No ratings yet
Parkin.13ge - econ.IM (22) G
14 pages
The Labour Force
No ratings yet
The Labour Force
17 pages
Original Presentation of Unemployment
No ratings yet
Original Presentation of Unemployment
9 pages
12 StevensonwolfersmacroANZ1e 41586 Ch11 2PP
No ratings yet
12 StevensonwolfersmacroANZ1e 41586 Ch11 2PP
24 pages
Unemployment Measurement & Impact
No ratings yet
Unemployment Measurement & Impact
63 pages
Chapter 5-1
No ratings yet
Chapter 5-1
13 pages
Q Unemployment
No ratings yet
Q Unemployment
8 pages
TABLE 2 - Household Population 15 Years Old and Over and Employment Status, Philippines: 2012 - October 2014
No ratings yet
TABLE 2 - Household Population 15 Years Old and Over and Employment Status, Philippines: 2012 - October 2014
2 pages
FINAL Unemployment - Famero111
No ratings yet
FINAL Unemployment - Famero111
45 pages
Unemployment Basics (Compatibility Mode)
No ratings yet
Unemployment Basics (Compatibility Mode)
6 pages
Assign 3
No ratings yet
Assign 3
12 pages
Chap 2
No ratings yet
Chap 2
83 pages
Unemploy Rate Tracnghiem
No ratings yet
Unemploy Rate Tracnghiem
14 pages
CHP 22 Monitoring Jobs and Inflation
No ratings yet
CHP 22 Monitoring Jobs and Inflation
27 pages
Monitoring Job and Inflation
No ratings yet
Monitoring Job and Inflation
12 pages
Principles of Macroeconomics 11th Edition Case Test Bank 1
100% (70)
Principles of Macroeconomics 11th Edition Case Test Bank 1
36 pages
Business Cycle & Unemployment
No ratings yet
Business Cycle & Unemployment
49 pages
Working Age Population and Unemployment by Putu Nadiani Putri Utama (1506305130) 4.3.1 Working Age Population and Labor Force
No ratings yet
Working Age Population and Unemployment by Putu Nadiani Putri Utama (1506305130) 4.3.1 Working Age Population and Labor Force
3 pages
Principles of Macroeconomics 11th Edition Case Test Bank 1
100% (87)
Principles of Macroeconomics 11th Edition Case Test Bank 1
22 pages
ECO 1213 Le 6
No ratings yet
ECO 1213 Le 6
37 pages
MAC 7 Employment June 28 06
100% (1)
MAC 7 Employment June 28 06
28 pages
Macro Economy Today 13th Edition Schiller Test Bank Download
100% (22)
Macro Economy Today 13th Edition Schiller Test Bank Download
200 pages
EC102 CHP 22 Unemployment
No ratings yet
EC102 CHP 22 Unemployment
11 pages
Macroeconomics Canadian 2nd Edition Hubbard Test Bank 1
100% (81)
Macroeconomics Canadian 2nd Edition Hubbard Test Bank 1
36 pages
Employment& Unemployment
No ratings yet
Employment& Unemployment
17 pages
LectureSlides Chp6
No ratings yet
LectureSlides Chp6
24 pages
Economic Fluctuations, Unemployment, and Inflation: Full Length Text - Macro Only Text
No ratings yet
Economic Fluctuations, Unemployment, and Inflation: Full Length Text - Macro Only Text
37 pages
Unemployment and Inflation
No ratings yet
Unemployment and Inflation
52 pages
Senate Budget
No ratings yet
Senate Budget
15 pages
Labor Economics Chapter Two
No ratings yet
Labor Economics Chapter Two
70 pages
Monitoring Jobs and Inflation
No ratings yet
Monitoring Jobs and Inflation
2 pages
Economics Today The Macro 17th Edition Roger LeRoy Miller Test Bank 1
100% (82)
Economics Today The Macro 17th Edition Roger LeRoy Miller Test Bank 1
9 pages
Labour Economics - Unit 1
No ratings yet
Labour Economics - Unit 1
34 pages
Employment, Labor, Inflation, and Poverty
No ratings yet
Employment, Labor, Inflation, and Poverty
35 pages
Micro and Macro 6
No ratings yet
Micro and Macro 6
35 pages
Investor-Focused Annual Report
No ratings yet
Investor-Focused Annual Report
58 pages
Proxy Form English
No ratings yet
Proxy Form English
1 page
Short-Term Financing Strategies
No ratings yet
Short-Term Financing Strategies
14 pages
E-Corp Q1 Accounts2016
No ratings yet
E-Corp Q1 Accounts2016
26 pages
Engro Corp Q1 2015 Financial Report
No ratings yet
Engro Corp Q1 2015 Financial Report
21 pages
q1 Accounts 2017 Engro
No ratings yet
q1 Accounts 2017 Engro
24 pages
Chapter 14 Waiting Line Models: Learning Objectives
No ratings yet
Chapter 14 Waiting Line Models: Learning Objectives
18 pages
GrandTeton Park Map 2011-2 PDF
No ratings yet
GrandTeton Park Map 2011-2 PDF
1 page
Nasa - Gov-Chasing The Total Solar Eclipse From NASAs WB-57F Jets
No ratings yet
Nasa - Gov-Chasing The Total Solar Eclipse From NASAs WB-57F Jets
45 pages
MGM 3161 - Teknik Kuantitatif Dalam Pengurusan Tutorial 7 - Model Barisan Menunggu
No ratings yet
MGM 3161 - Teknik Kuantitatif Dalam Pengurusan Tutorial 7 - Model Barisan Menunggu
3 pages
787746835
No ratings yet
787746835
10 pages
Patrick Nguyen - Key Selection Criteria
No ratings yet
Patrick Nguyen - Key Selection Criteria
2 pages
Solving Problems Involving Loans
No ratings yet
Solving Problems Involving Loans
13 pages
P&Id Reverse Osmosis: Shuqaiq 3 Independent Water Project
No ratings yet
P&Id Reverse Osmosis: Shuqaiq 3 Independent Water Project
20 pages
3-Channel Laser Diode Driver + Oscillator Features: Get Full Datasheet
No ratings yet
3-Channel Laser Diode Driver + Oscillator Features: Get Full Datasheet
2 pages
Living Conditions During The Industrial Revolution
No ratings yet
Living Conditions During The Industrial Revolution
7 pages
Formative and Summative Assessment
100% (1)
Formative and Summative Assessment
2 pages
KNHDH 2 Dec
No ratings yet
KNHDH 2 Dec
3 pages
Dealer Accreditation Form
No ratings yet
Dealer Accreditation Form
3 pages
Structural Steel Cambering Guide
No ratings yet
Structural Steel Cambering Guide
3 pages
Perhitungan Tugas Besar Geometri Jalan Raya (Andre Gunawan 1622201019)
No ratings yet
Perhitungan Tugas Besar Geometri Jalan Raya (Andre Gunawan 1622201019)
77 pages
November 2015 Cash Advance Liquidation
No ratings yet
November 2015 Cash Advance Liquidation
36 pages
"Gone Girl: Reality Distortion Study"
No ratings yet
"Gone Girl: Reality Distortion Study"
15 pages
FC Model Trend Catalogue 2018
No ratings yet
FC Model Trend Catalogue 2018
37 pages
Slide of Chapter 1
No ratings yet
Slide of Chapter 1
29 pages
International Retailing
100% (1)
International Retailing
29 pages
Work Completion Report
100% (2)
Work Completion Report
4 pages
Insider Trading: India vs USA
100% (1)
Insider Trading: India vs USA
13 pages
Cloud Security Engineer Course Outline
No ratings yet
Cloud Security Engineer Course Outline
4 pages
Calculation of Hydropower Generation (ENG)
No ratings yet
Calculation of Hydropower Generation (ENG)
9 pages
A Complete Guide To Aso
No ratings yet
A Complete Guide To Aso
14 pages
BC Calculus Unit 7: Polar, Parametric, Vector Practice
No ratings yet
BC Calculus Unit 7: Polar, Parametric, Vector Practice
28 pages
Data Structures for CS Students
No ratings yet
Data Structures for CS Students
16 pages
ImagePROGRAF TM Series Brochure 200
No ratings yet
ImagePROGRAF TM Series Brochure 200
4 pages
A229 Pro English Manual
No ratings yet
A229 Pro English Manual
22 pages
Beast: A Tale of Love and Revenge by Lisa Jansen Chapter Sampler
No ratings yet
Beast: A Tale of Love and Revenge by Lisa Jansen Chapter Sampler
41 pages
Product Inspection
No ratings yet
Product Inspection
16 pages
Augie The Green Knight PDF
No ratings yet
Augie The Green Knight PDF
230 pages
OPT A2 U08 Vocab Standard
No ratings yet
OPT A2 U08 Vocab Standard
1 page
WWG - Maiden of The High Seas - Props - Instructions
No ratings yet
WWG - Maiden of The High Seas - Props - Instructions
22 pages
Lasam Revenue Strategy 2022-2024
No ratings yet
Lasam Revenue Strategy 2022-2024
2 pages